We Discuss Why Regis Resources Limited's (ASX:RRL) CEO Compensation May Be Closely Reviewed

Key Insights

• Regis Resources' Annual General Meeting to take place on 23rd of November
• Total pay for CEO Jim Beyer includes AU$828.9k salary
• The overall pay is comparable to the industry average
• Over the past three years, Regis Resources' EPS fell by 100% and over the past three years, the total loss to shareholders 49%

Regis Resources Limited (ASX:RRL) has not performed well recently and CEO Jim Beyer will probably need to up their game. At the upcoming AGM on 23rd of November, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for Regis Resources

How Does Total Compensation For Jim Beyer Compare With Other Companies In The Industry?

Our data indicates that Regis Resources Limited has a market capitalization of AU$1.4b, and total annual CEO compensation was reported as AU$1.8m for the year to June 2023. We note that's an increase of 9.6% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$829k.

In comparison with other companies in the Australian Metals and Mining industry with market capitalizations ranging from AU$613m to AU$2.5b, the reported median CEO total compensation was AU$1.5m. So it looks like Regis Resources compensates Jim Beyer in line with the median for the industry. Furthermore, Jim Beyer directly owns AU$867k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	AU$829k	AU$780k	45%
Other	AU$1.0m	AU$890k	55%
Total Compensation	AU$1.8m	AU$1.7m	100%

On an industry level, roughly 61% of total compensation represents salary and 39% is other remuneration. Regis Resources sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Regis Resources Limited's Growth Numbers

Over the last three years, Regis Resources Limited has shrunk its earnings per share by 100% per year. Its revenue is up 12% over the last year.

Overall this is not a very positive result for shareholders. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Regis Resources Limited Been A Good Investment?

The return of -49% over three years would not have pleased Regis Resources Limited shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

Whatever your view on compensation, you might want to check if insiders are buying or selling Regis Resources shares (free trial).

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.