This Is The Reason Why We Think Emerald Resources NL's (ASX:EMR) CEO Might Be Underpaid

Key Insights

• Emerald Resources will host its Annual General Meeting on 28th of November
• Salary of AU$694.8k is part of CEO Morgan Hart's total remuneration
• The total compensation is 65% less than the average for the industry
• Over the past three years, Emerald Resources' EPS grew by 16% and over the past three years, the total shareholder return was 364%

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The impressive results at Emerald Resources NL (ASX:EMR) recently will be great news for shareholders. This would be kept in mind at the upcoming AGM on 28th of November which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for Emerald Resources

Comparing Emerald Resources NL's CEO Compensation With The Industry

At the time of writing, our data shows that Emerald Resources NL has a market capitalization of AU$3.5b, and reported total annual CEO compensation of AU$920k for the year to June 2025. That's a modest increase of 7.5% on the prior year. We note that the salary portion, which stands at AU$694.8k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Australian Metals and Mining industry with market caps ranging from AU$1.5b to AU$4.9b, we found that the median CEO total compensation was AU$2.7m. Accordingly, Emerald Resources pays its CEO under the industry median. Furthermore, Morgan Hart directly owns AU$208m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 67% of total compensation represents salary, while the remainder of 33% is other remuneration. Emerald Resources pays out 76% 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.

Emerald Resources NL's Growth

Emerald Resources NL's earnings per share (EPS) grew 16% per year over the last three years. In the last year, its revenue is up 17%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and 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 Emerald Resources NL Been A Good Investment?

Most shareholders would probably be pleased with Emerald Resources NL for providing a total return of 364% over three years. 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...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

Shareholders may want to check for free if Emerald Resources insiders are buying or selling shares.

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.

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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.