Luke Tonkin has been the CEO of Silver Lake Resources Limited (ASX:SLR) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Silver Lake Resources
How Does Luke Tonkin’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Silver Lake Resources Limited has a market cap of AU$655m, and is paying total annual CEO compensation of AU$1.3m. (This figure is for the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$648k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of AU$278m to AU$1.1b. The median total CEO compensation was AU$1.0m.
So Luke Tonkin is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Silver Lake Resources has changed over time.
Is Silver Lake Resources Limited Growing?
Silver Lake Resources Limited has increased its earnings per share (EPS) by an average of 115% a year, over the last three years (using a line of best fit). Its revenue is up 11% over last year.
This demonstrates that the company has been improving recently. A good result. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Silver Lake Resources Limited Been A Good Investment?
I think that the total shareholder return of 121%, over three years, would leave most Silver Lake Resources Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
Luke Tonkin is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Silver Lake Resources.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.