Stock Analysis

Our Take On Antipa Minerals' (ASX:AZY) CEO Salary

ASX:AZY
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Roger Mason became the CEO of Antipa Minerals Limited (ASX:AZY) in 2011, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Antipa Minerals.

See our latest analysis for Antipa Minerals

Comparing Antipa Minerals Limited's CEO Compensation With the industry

Our data indicates that Antipa Minerals Limited has a market capitalization of AU$115m, and total annual CEO compensation was reported as AU$504k for the year to June 2020. We note that's an increase of 25% above last year. In particular, the salary of AU$300.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under AU$260m, the reported median total CEO compensation was AU$306k. This suggests that Roger Mason is paid more than the median for the industry. Moreover, Roger Mason also holds AU$655k worth of Antipa Minerals stock directly under their own name.

Component20202019Proportion (2020)
SalaryAU$300kAU$300k60%
OtherAU$204kAU$105k40%
Total CompensationAU$504k AU$405k100%

Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. It's interesting to note that Antipa Minerals allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

ceo-compensation
ASX:AZY CEO Compensation January 26th 2021

A Look at Antipa Minerals Limited's Growth Numbers

Over the past three years, Antipa Minerals Limited has seen its earnings per share (EPS) grow by 13% per year. Its revenue is up 289% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Antipa Minerals Limited Been A Good Investment?

Boasting a total shareholder return of 119% over three years, Antipa Minerals Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

As we touched on above, Antipa Minerals Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, EPS growth and shareholder returns are very impressive over the last three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Roger's performance creates value for the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 4 warning signs for Antipa Minerals (2 are concerning!) that you should be aware of before investing here.

Switching gears from Antipa Minerals, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. 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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