Andy Tudor has been the CEO of Nexus Minerals Limited (ASX:NXM) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
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How Does Andy Tudor’s Compensation Compare With Similar Sized Companies?
Our data indicates that Nexus Minerals Limited is worth AU$5.7m, and total annual CEO compensation is AU$333k. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at AU$251k. We took a group of companies with market capitalizations below AU$291m, and calculated the median CEO total compensation to be AU$355k.
So Andy Tudor receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Nexus Minerals, below.
Is Nexus Minerals Limited Growing?
Over the last three years Nexus Minerals Limited has shrunk its earnings per share by an average of 12% per year (measured with a line of best fit). In the last year, its revenue is up 126%.
The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Nexus Minerals Limited Been A Good Investment?
Since shareholders would have lost about 39% over three years, some Nexus Minerals Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Remuneration for Andy Tudor is close enough to the median pay for a CEO of a similar sized company .
We would like to see somewhat stronger per share growth. And we think the shareholder returns – over three years – have been underwhelming. So it would take a bold person to suggest the pay is too modest. Shareholders may want to check for free if Nexus Minerals insiders are buying or selling shares.
Important note: Nexus Minerals may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.