James Fox has been the CEO of PNX Metals Limited (ASX:PNX) since 2012. 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. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for PNX Metals
How Does James Fox's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that PNX Metals Limited has a market cap of AU$17m, and reported total annual CEO compensation of AU$324k for the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$276k. We looked at a group of companies with market capitalizations under AU$292m, and the median CEO total compensation was AU$381k.
That means James Fox receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at PNX Metals, below.
Is PNX Metals Limited Growing?
Over the last three years PNX Metals Limited has grown its earnings per share (EPS) by an average of 36% per year (using a line of best fit). It achieved revenue growth of 143% over the last year.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Shareholders might be interested in this free visualization of analyst forecasts.
Has PNX Metals Limited Been A Good Investment?
Given the total loss of 73% over three years, many shareholders in PNX Metals Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
James Fox is paid around what is normal the leaders of comparable size companies.
We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at PNX Metals.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.