The CEO of Bryah Resources Limited (ASX:BYH) is Neil Marston, and this article examines 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 Bryah Resources.
Check out our latest analysis for Bryah Resources
Comparing Bryah Resources Limited's CEO Compensation With the industry
At the time of writing, our data shows that Bryah Resources Limited has a market capitalization of AU$10m, and reported total annual CEO compensation of AU$241k for the year to June 2020. That's a notable decrease of 8.3% on last year. Notably, the salary which is AU$220.0k, represents most of the total compensation being paid.
For comparison, other companies in the industry with market capitalizations below AU$260m, reported a median total CEO compensation of AU$306k. So it looks like Bryah Resources compensates Neil Marston in line with the median for the industry. Moreover, Neil Marston also holds AU$429k worth of Bryah Resources stock directly under their own name.
Component | 2020 | 2019 | Proportion (2020) |
Salary | AU$220k | AU$240k | 91% |
Other | AU$21k | AU$23k | 9% |
Total Compensation | AU$241k | AU$263k | 100% |
On an industry level, roughly 69% of total compensation represents salary and 31% is other remuneration. Bryah Resources is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Bryah Resources Limited's Growth
Bryah Resources Limited has seen its earnings per share (EPS) increase by 27% a year over the past three years. In the last year, its revenue is down 68%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Bryah Resources Limited Been A Good Investment?
Given the total shareholder loss of 49% over three years, many shareholders in Bryah Resources Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
To Conclude...
As we noted earlier, Bryah Resources pays its CEO in line with similar-sized companies belonging to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. But EPS growth is moving in a favorable direction, certainly a positive sign. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 5 warning signs for Bryah Resources that investors should look into moving forward.
Switching gears from Bryah Resources, 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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Access Free AnalysisThis 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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About ASX:BYH
Flawless balance sheet moderate.