Boab Metals Limited's (ASX:BML) CEO Will Probably Have Their Compensation Approved By Shareholders

The performance at Boab Metals Limited (ASX:BML) has been quite strong recently and CEO Simon Noon has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 26 November 2021. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

See our latest analysis for Boab Metals

How Does Total Compensation For Simon Noon Compare With Other Companies In The Industry?

At the time of writing, our data shows that Boab Metals Limited has a market capitalization of AU$55m, and reported total annual CEO compensation of AU$457k for the year to June 2021. We note that's an increase of 26% above last year. We note that the salary portion, which stands at AU$283.5k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below AU$275m, reported a median total CEO compensation of AU$352k. This suggests that Boab Metals remunerates its CEO largely in line with the industry average. Furthermore, Simon Noon directly owns AU$654k worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	AU$284k	AU$240k	62%
Other	AU$174k	AU$122k	38%
Total Compensation	AU$457k	AU$362k	100%

On an industry level, around 59% of total compensation represents salary and 41% is other remuneration. Although there is a difference in how total compensation is set, Boab Metals more or less reflects the market in terms of setting the salary. 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.

Boab Metals Limited's Growth

Boab Metals Limited's earnings per share (EPS) grew 26% per year over the last three years. In the last year, its revenue is up 77%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Boab Metals Limited Been A Good Investment?

We think that the total shareholder return of 140%, over three years, would leave most Boab Metals Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for Boab Metals (of which 2 are potentially serious!) that you should know about in order to have a holistic understanding of the stock.

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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