We Think Some Shareholders May Hesitate To Increase Viking Mines Limited's (ASX:VKA) CEO Compensation

Key Insights

• Viking Mines to hold its Annual General Meeting on 22nd of November
• Total pay for CEO Julian Woodcock includes AU$265.0k salary
• The overall pay is comparable to the industry average
• Viking Mines' EPS grew by 71% over the past three years while total shareholder loss over the past three years was 33%

The underwhelming share price performance of Viking Mines Limited (ASX:VKA) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 22nd of November. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Viking Mines

How Does Total Compensation For Julian Woodcock Compare With Other Companies In The Industry?

At the time of writing, our data shows that Viking Mines Limited has a market capitalization of AU$11m, and reported total annual CEO compensation of AU$334k for the year to June 2023. That's a notable decrease of 19% on last year. Notably, the salary which is AU$265.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Australian Metals and Mining industry with market capitalizations below AU$306m, we found that the median total CEO compensation was AU$379k. This suggests that Viking Mines remunerates its CEO largely in line with the industry average. Furthermore, Julian Woodcock directly owns AU$154k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	AU$265k	AU$245k	79%
Other	AU$69k	AU$168k	21%
Total Compensation	AU$334k	AU$413k	100%

Speaking on an industry level, nearly 61% of total compensation represents salary, while the remainder of 39% is other remuneration. Viking Mines is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Viking Mines Limited's Growth Numbers

Viking Mines Limited has seen its earnings per share (EPS) increase by 71% a year over the past three years. It achieved revenue growth of 6.5% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Viking Mines Limited Been A Good Investment?

The return of -33% over three years would not have pleased Viking Mines Limited shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for Viking Mines you should be aware of, and 2 of them make us uncomfortable.

Important note: Viking Mines 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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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.