Our View On PepinNini Minerals' (ASX:PNN) CEO Pay

Rebecca Holland-Kennedy became the CEO of PepinNini Minerals Limited (ASX:PNN) 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 PepinNini Minerals.

View our latest analysis for PepinNini Minerals

How Does Total Compensation For Rebecca Holland-Kennedy Compare With Other Companies In The Industry?

At the time of writing, our data shows that PepinNini Minerals Limited has a market capitalization of AU$13m, and reported total annual CEO compensation of AU$196k for the year to June 2020. That is, the compensation was roughly the same as last year. In particular, the salary of AU$174.8k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below AU$259m, reported a median total CEO compensation of AU$306k. This suggests that Rebecca Holland-Kennedy is paid below the industry median. Furthermore, Rebecca Holland-Kennedy directly owns AU$924k worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 69% of total compensation out of all the companies we analyzed, while other remuneration made up 31% of the pie. PepinNini Minerals pays out 89% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at PepinNini Minerals Limited's Growth Numbers

Over the past three years, PepinNini Minerals Limited has seen its earnings per share (EPS) grow by 40% per year. Its revenue is up 39% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has PepinNini Minerals Limited Been A Good Investment?

Since shareholders would have lost about 94% over three years, some PepinNini Minerals Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we touched on above, PepinNini Minerals Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, the company has impressed with its EPS growth over three years. It's tough to criticize CEO compensation when the per-share EPS movement is positive. Shareholders, though, would ideally like to see shareholder returns head north before they agree to any raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 4 warning signs for PepinNini Minerals you should be aware of, and 3 of them are significant.

Switching gears from PepinNini Minerals, 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. 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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