What Does Tribune Resources' (ASX:TBR) CEO Pay Reveal?

Anton Billis is the CEO of Tribune Resources Limited (ASX:TBR), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Tribune Resources.

View our latest analysis for Tribune Resources

Comparing Tribune Resources Limited's CEO Compensation With the industry

At the time of writing, our data shows that Tribune Resources Limited has a market capitalization of AU$305m, and reported total annual CEO compensation of AU$482k for the year to June 2020. Notably, that's an increase of 26% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$183k.

On comparing similar companies from the same industry with market caps ranging from AU$129m to AU$518m, we found that the median CEO total compensation was AU$511k. From this we gather that Anton Billis is paid around the median for CEOs in the industry. Furthermore, Anton Billis directly owns AU$99m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. Tribune Resources pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Tribune Resources Limited's Growth

Tribune Resources Limited's earnings per share (EPS) grew 8.8% per year over the last three years. Its revenue is down 50% over the previous year.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest EPSgrowth 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. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Tribune Resources Limited Been A Good Investment?

Boasting a total shareholder return of 41% over three years, Tribune Resources Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As we noted earlier, Tribune Resources pays its CEO in line with similar-sized companies belonging to the same industry. But the company has been found wanting in terms of EPS growth over the past three years. Meanwhile, shareholder returns have remained positive over the same time frame. There is room for improved company performance, but we don't see the CEO compensation as a big issue here.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Tribune Resources (1 is a bit unpleasant!) that you should be aware of before investing here.

Switching gears from Tribune Resources, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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. 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.
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