In 2013 Ben Stoikovich was appointed CEO of Prairie Mining Limited (ASX:PDZ). First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Prairie Mining
How Does Ben Stoikovich's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Prairie Mining Limited has a market cap of AU$49m, and reported total annual CEO compensation of AU$129k for the year to June 2019. That's less than last year. It is worth noting that the CEO compensation consists almost entirely of the salary, worth AU$454k. We took a group of companies with market capitalizations below AU$294m, and calculated the median CEO total compensation to be AU$374k.
A first glance this seems like a real positive for shareholders, since Ben Stoikovich is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Prairie Mining, below.
Is Prairie Mining Limited Growing?
Over the last three years Prairie Mining Limited has shrunk its earnings per share by an average of 10% per year (measured with a line of best fit). In the last year, its revenue is down 33%.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Prairie Mining Limited Been A Good Investment?
Since shareholders would have lost about 41% over three years, some Prairie Mining Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
It looks like Prairie Mining Limited pays its CEO less than similar sized companies.
Shareholders should note that compensation for Ben Stoikovich is under the median of a group of similar sized companies. But then, EPS growth is lacking and so are the returns to shareholders. We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. Whatever your view on compensation, you might want to check if insiders are buying or selling Prairie Mining shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.