It's Unlikely That The CEO Of Canterbury Resources Limited (ASX:CBY) Will See A Huge Pay Rise This Year

Key Insights

• Canterbury Resources' Annual General Meeting to take place on 21st of November
• Total pay for CEO Grant Craighead includes AU$270.3k salary
• The overall pay is comparable to the industry average
• Canterbury Resources' EPS grew by 29% over the past three years while total shareholder loss over the past three years was 74%

Shareholders of Canterbury Resources Limited (ASX:CBY) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 21st of November could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Canterbury Resources

How Does Total Compensation For Grant Craighead Compare With Other Companies In The Industry?

Our data indicates that Canterbury Resources Limited has a market capitalization of AU$5.1m, and total annual CEO compensation was reported as AU$303k for the year to June 2024. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at AU$270.3k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Australian Metals and Mining industry with market capitalizations below AU$309m, we found that the median total CEO compensation was AU$396k. This suggests that Canterbury Resources remunerates its CEO largely in line with the industry average. Furthermore, Grant Craighead directly owns AU$315k worth of shares in the company.

Component	2024	2023	Proportion (2024)
Salary	AU$270k	AU$271k	89%
Other	AU$33k	AU$36k	11%
Total Compensation	AU$303k	AU$307k	100%

Talking in terms of the industry, salary represented approximately 63% of total compensation out of all the companies we analyzed, while other remuneration made up 37% of the pie. Canterbury Resources pays out 89% of remuneration in the form of a salary, significantly higher than the industry average. 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.

A Look at Canterbury Resources Limited's Growth Numbers

Over the past three years, Canterbury Resources Limited has seen its earnings per share (EPS) grow by 29% per year. Its revenue is up 102% 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. 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 Canterbury Resources Limited Been A Good Investment?

The return of -74% over three years would not have pleased Canterbury Resources Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

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. We did our research and identified 4 warning signs (and 2 which are potentially serious) in Canterbury Resources we think you should know about.

Switching gears from Canterbury 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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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.