How Much Is Blackstone Minerals' (ASX:BSX) CEO Getting Paid?

This article will reflect on the compensation paid to Scott Williamson who has served as CEO of Blackstone Minerals Limited (ASX:BSX) since 2017. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Blackstone Minerals

Comparing Blackstone Minerals Limited's CEO Compensation With the industry

At the time of writing, our data shows that Blackstone Minerals Limited has a market capitalization of AU$112m, and reported total annual CEO compensation of AU$646k for the year to June 2020. That's a notable increase of 74% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$237k.

In comparison with other companies in the industry with market capitalizations under AU$271m, the reported median total CEO compensation was AU$312k. Hence, we can conclude that Scott Williamson is remunerated higher than the industry median. Moreover, Scott Williamson also holds AU$2.5m worth of Blackstone Minerals stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 70% of total compensation represents salary, while the remainder of 30% is other remuneration. It's interesting to note that Blackstone Minerals allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Blackstone Minerals Limited's Growth Numbers

Over the past three years, Blackstone Minerals Limited has seen its earnings per share (EPS) grow by 35% per year. In the last year, its revenue is up 226%.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Blackstone Minerals Limited Been A Good Investment?

Since shareholders would have lost about 37% over three years, some Blackstone Minerals Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As previously discussed, Scott is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, we must not forget that the EPS growth has been very strong, but shareholder returns — over the same period — have been disappointing. Considering overall performance, we can't say Scott is underpaid, in fact compensation is definitely on the higher side.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 5 warning signs for Blackstone Minerals you should be aware of, and 3 of them are concerning.

Important note: Blackstone Minerals is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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