What Can We Make Of Antilles Gold's (ASX:PGI) CEO Compensation?

Brian Johnson is the CEO of Antilles Gold Limited (ASX:PGI), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Antilles Gold

Comparing Antilles Gold Limited's CEO Compensation With the industry

At the time of writing, our data shows that Antilles Gold Limited has a market capitalization of AU$12m, and reported total annual CEO compensation of US$376k for the year to December 2019. That's a slightly lower by 6.7% over the previous year. It is worth noting that the CEO compensation consists entirely of the salary, worth US$376k.

For comparison, other companies in the industry with market capitalizations below AU$272m, reported a median total CEO compensation of US$230k. Accordingly, our analysis reveals that Antilles Gold Limited pays Brian Johnson north of the industry median. Moreover, Brian Johnson also holds AU$4.1m worth of Antilles Gold stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 70% of total compensation represents salary, while the remainder of 30% is other remuneration. Speaking on a company level, Antilles Gold prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Antilles Gold Limited's Growth Numbers

Antilles Gold Limited has seen its earnings per share (EPS) increase by 65% a year over the past three years. In the last year, its revenue is down 42%.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Antilles Gold Limited Been A Good Investment?

Most shareholders would probably be pleased with Antilles Gold Limited for providing a total return of 112% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Antilles Gold pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we noted earlier, Antilles Gold pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Importantly though, EPS growth and shareholder returns are very impressive over the last three years. As a result of the excellent all-round performance of the company, we believe CEO compensation is fair. Given the strong history of shareholder returns, the shareholders are probably very happy with Brian's performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Antilles Gold (2 are potentially serious!) that you should be aware of before investing here.

Important note: Antilles Gold is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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