Shareholders May Be More Conservative With Image Resources NL's (ASX:IMA) CEO Compensation For Now

Under the guidance of CEO Patrick Mutz, Image Resources NL (ASX:IMA) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 27 May 2021. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Image Resources

Comparing Image Resources NL's CEO Compensation With the industry

Our data indicates that Image Resources NL has a market capitalization of AU$165m, and total annual CEO compensation was reported as AU$622k for the year to December 2020. That's a slight decrease of 4.6% on the prior year. We note that the salary portion, which stands at AU$464.7k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below AU$258m, we found that the median total CEO compensation was AU$305k. This suggests that Patrick Mutz is paid more than the median for the industry. Moreover, Patrick Mutz also holds AU$603k worth of Image Resources stock directly under their own name.

Component	2020	2019	Proportion (2020)
Salary	AU$465k	AU$426k	75%
Other	AU$158k	AU$226k	25%
Total Compensation	AU$622k	AU$653k	100%

On an industry level, roughly 69% of total compensation represents salary and 31% is other remuneration. Although there is a difference in how total compensation is set, Image Resources more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Image Resources NL's Growth

Image Resources NL has seen its earnings per share (EPS) increase by 100% a year over the past three years. It achieved revenue growth of 21% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Image Resources NL Been A Good Investment?

Boasting a total shareholder return of 41% over three years, Image Resources NL has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for Image Resources that investors should look into moving forward.

Switching gears from Image 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. 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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