Here's Why Shareholders May Want To Be Cautious With Increasing Antipa Minerals Limited's (ASX:AZY) CEO Pay Packet

Under the guidance of CEO Roger Mason, Antipa Minerals Limited (ASX:AZY) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 19 November 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Antipa Minerals

Comparing Antipa Minerals Limited's CEO Compensation With the industry

According to our data, Antipa Minerals Limited has a market capitalization of AU$179m, and paid its CEO total annual compensation worth AU$780k over the year to June 2021. We note that's an increase of 55% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$315k.

For comparison, other companies in the industry with market capitalizations below AU$274m, reported a median total CEO compensation of AU$355k. Accordingly, our analysis reveals that Antipa Minerals Limited pays Roger Mason north of the industry median. Moreover, Roger Mason also holds AU$837k worth of Antipa Minerals stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2021	2020	Proportion (2021)
Salary	AU$315k	AU$300k	40%
Other	AU$465k	AU$204k	60%
Total Compensation	AU$780k	AU$504k	100%

On an industry level, roughly 59% of total compensation represents salary and 41% is other remuneration. In Antipa Minerals' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Antipa Minerals Limited's Growth Numbers

Antipa Minerals Limited's earnings per share (EPS) grew 5.6% per year over the last three years. Its revenue is up 21% over the last year.

We think the revenue growth is good. And the modest growth in EPS isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Antipa Minerals Limited Been A Good Investment?

Boasting a total shareholder return of 159% over three years, Antipa Minerals Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 2 which shouldn't be ignored) in Antipa Minerals we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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