How Much Is Pacifico Minerals' (ASX:PMY) CEO Getting Paid?

Simon Noon became the CEO of Pacifico Minerals Limited (ASX:PMY) in 2013, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Pacifico Minerals.

Check out our latest analysis for Pacifico Minerals

How Does Total Compensation For Simon Noon Compare With Other Companies In The Industry?

According to our data, Pacifico Minerals Limited has a market capitalization of AU$68m, and paid its CEO total annual compensation worth AU$362k over the year to June 2020. We note that's an increase of 25% above last year. In particular, the salary of AU$240.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below AU$265m, we found that the median total CEO compensation was AU$312k. So it looks like Pacifico Minerals compensates Simon Noon in line with the median for the industry. What's more, Simon Noon holds AU$818k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 70% of total compensation out of all the companies we analyzed, while other remuneration made up 30% of the pie. Although there is a difference in how total compensation is set, Pacifico Minerals more or less reflects the market in terms of setting the salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Pacifico Minerals Limited's Growth

Over the past three years, Pacifico Minerals Limited has seen its earnings per share (EPS) grow by 17% per year. In the last year, its revenue is up 176%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Pacifico Minerals Limited Been A Good Investment?

Boasting a total shareholder return of 200% over three years, Pacifico Minerals Limited 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.

In Summary...

As we noted earlier, Pacifico Minerals pays its CEO in line with similar-sized companies belonging to the same industry. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. Indeed, many might consider that Simon is compensated rather modestly, given the solid company performance! Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for Pacifico Minerals (1 is potentially serious!) that you should be aware of before investing here.

Important note: Pacifico Minerals 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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