Shareholders May Not Be So Generous With Venus Metals Corporation Limited's (ASX:VMC) CEO Compensation And Here's Why

Key Insights

• Venus Metals' Annual General Meeting to take place on 16th of November
• Salary of AU$250.0k is part of CEO Matt Hogan's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, Venus Metals' EPS fell by 63% and over the past three years, the total loss to shareholders 28%

In the past three years, the share price of Venus Metals Corporation Limited (ASX:VMC) has struggled to grow and now shareholders are sitting on a loss. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 16th of November, where they can impact on future company performance by voting on resolutions, including executive compensation. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.

Check out our latest analysis for Venus Metals

Comparing Venus Metals Corporation Limited's CEO Compensation With The Industry

According to our data, Venus Metals Corporation Limited has a market capitalization of AU$20m, and paid its CEO total annual compensation worth AU$433k over the year to June 2023. That's a notable increase of 38% on last year. We note that the salary of AU$250.0k makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the Australian Metals and Mining industry with market capitalizations under AU$313m, the reported median total CEO compensation was AU$391k. So it looks like Venus Metals compensates Matt Hogan in line with the median for the industry. Furthermore, Matt Hogan directly owns AU$517k worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	AU$250k	AU$250k	58%
Other	AU$183k	AU$63k	42%
Total Compensation	AU$433k	AU$313k	100%

Speaking on an industry level, nearly 61% of total compensation represents salary, while the remainder of 39% is other remuneration. Venus Metals is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Venus Metals Corporation Limited's Growth Numbers

Venus Metals Corporation Limited has reduced its earnings per share by 63% a year over the last three years. In the last year, its revenue is up 4,374%.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Venus Metals Corporation Limited Been A Good Investment?

With a three year total loss of 28% for the shareholders, Venus Metals Corporation Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 5 warning signs for Venus Metals (of which 3 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.