We Take A Look At Why Perseus Mining Limited's (ASX:PRU) CEO Compensation Is Well Earned

Key Insights

• Perseus Mining will host its Annual General Meeting on 22nd of November
• Total pay for CEO Jeff Quartermaine includes US$641.3k salary
• The total compensation is similar to the average for the industry
• Over the past three years, Perseus Mining's EPS grew by 49% and over the past three years, the total shareholder return was 43%

The performance at Perseus Mining Limited (ASX:PRU) has been quite strong recently and CEO Jeff Quartermaine has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 22nd of November. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for Perseus Mining

How Does Total Compensation For Jeff Quartermaine Compare With Other Companies In The Industry?

Our data indicates that Perseus Mining Limited has a market capitalization of AU$3.5b, and total annual CEO compensation was reported as US$1.9m for the year to June 2024. We note that's an increase of 14% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$641k.

For comparison, other companies in the Australian Metals and Mining industry with market capitalizations ranging between AU$1.5b and AU$5.0b had a median total CEO compensation of US$1.5m. From this we gather that Jeff Quartermaine is paid around the median for CEOs in the industry. Moreover, Jeff Quartermaine also holds AU$11m worth of Perseus Mining stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	US$641k	US$643k	34%
Other	US$1.2m	US$993k	66%
Total Compensation	US$1.9m	US$1.6m	100%

On an industry level, roughly 63% of total compensation represents salary and 37% is other remuneration. It's interesting to note that Perseus Mining allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Perseus Mining Limited's Growth

Over the past three years, Perseus Mining Limited has seen its earnings per share (EPS) grow by 49% per year. Its revenue is up 6.8% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Perseus Mining Limited Been A Good Investment?

We think that the total shareholder return of 43%, over three years, would leave most Perseus Mining Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Perseus Mining that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.