There Could Be A Chance Tribune Resources Limited's (ASX:TBR) CEO Will Have Their Compensation Increased

Simply Wall St
November 19, 2021
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Shareholders will be pleased by the robust performance of Tribune Resources Limited (ASX:TBR) recently and this will be kept in mind in the upcoming AGM on 26 November 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

Check out our latest analysis for Tribune Resources

How Does Total Compensation For Anton Billis Compare With Other Companies In The Industry?

At the time of writing, our data shows that Tribune Resources Limited has a market capitalization of AU$263m, and reported total annual CEO compensation of AU$279k for the year to June 2021. Notably, that's a decrease of 42% over the year before. We note that the salary portion, which stands at AU$183.4k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between AU$138m and AU$551m had a median total CEO compensation of AU$607k. This suggests that Anton Billis is paid below the industry median. Moreover, Anton Billis also holds AU$84m worth of Tribune Resources stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20212020Proportion (2021)
Salary AU$183k AU$183k 66%
Other AU$96k AU$299k 34%
Total CompensationAU$279k AU$482k100%

On an industry level, roughly 59% of total compensation represents salary and 41% is other remuneration. According to our research, Tribune Resources has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ASX:TBR CEO Compensation November 19th 2021

A Look at Tribune Resources Limited's Growth Numbers

Tribune Resources Limited has seen its earnings per share (EPS) increase by 4.7% a year over the past three years. It saw its revenue drop 1.5% over the last year.

We generally like to see a little revenue growth, but the modest EPS growth gives us some relief. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Tribune Resources Limited Been A Good Investment?

With a total shareholder return of 18% over three years, Tribune Resources Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Tribune Resources that investors should think about before committing capital to this stock.

Important note: Tribune Resources is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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