Shareholders May Not Be So Generous With Ora Banda Mining Limited's (ASX:OBM) CEO Compensation And Here's Why

Key Insights

• Ora Banda Mining to hold its Annual General Meeting on 19th of November
• CEO Luke Creagh's total compensation includes salary of AU$722.8k
• Total compensation is 53% above industry average
• Ora Banda Mining's total shareholder return over the past three years was 1,232% while its EPS grew by 125% over the past three years

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CEO Luke Creagh has done a decent job of delivering relatively good performance at Ora Banda Mining Limited (ASX:OBM) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 19th of November. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Ora Banda Mining

How Does Total Compensation For Luke Creagh Compare With Other Companies In The Industry?

Our data indicates that Ora Banda Mining Limited has a market capitalization of AU$2.3b, and total annual CEO compensation was reported as AU$4.2m for the year to June 2025. Notably, that's an increase of 30% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$723k.

On examining similar-sized companies in the Australian Metals and Mining industry with market capitalizations between AU$1.5b and AU$4.9b, we discovered that the median CEO total compensation of that group was AU$2.7m. Hence, we can conclude that Luke Creagh is remunerated higher than the industry median. Moreover, Luke Creagh also holds AU$79m worth of Ora Banda Mining stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. Ora Banda Mining pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Ora Banda Mining Limited's Growth

Ora Banda Mining Limited's earnings per share (EPS) grew 125% per year over the last three years. It achieved revenue growth of 89% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Ora Banda Mining Limited Been A Good Investment?

Most shareholders would probably be pleased with Ora Banda Mining Limited for providing a total return of 1,232% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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. That's why we did some digging and identified 1 warning sign for Ora Banda Mining that investors should think about before committing capital to this stock.

Switching gears from Ora Banda Mining, 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.