The Compensation For Venture Minerals Limited's (ASX:VMS) CEO Looks Deserved And Here's Why

The performance at Venture Minerals Limited (ASX:VMS) has been quite strong recently and CEO Andrew Radonjic has played a role in it. Coming up to the next AGM on 28 April 2021, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for Venture Minerals

How Does Total Compensation For Andrew Radonjic Compare With Other Companies In The Industry?

At the time of writing, our data shows that Venture Minerals Limited has a market capitalization of AU$79m, and reported total annual CEO compensation of AU$270k for the year to June 2020. That's a slight decrease of 6.0% on the prior year. In particular, the salary of AU$214.8k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below AU$259m, we found that the median total CEO compensation was AU$305k. From this we gather that Andrew Radonjic is paid around the median for CEOs in the industry. Moreover, Andrew Radonjic also holds AU$754k worth of Venture Minerals stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	AU$215k	AU$210k	79%
Other	AU$56k	AU$78k	21%
Total Compensation	AU$270k	AU$288k	100%

Talking in terms of the industry, salary represented approximately 69% of total compensation out of all the companies we analyzed, while other remuneration made up 31% of the pie. Venture Minerals is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Venture Minerals Limited's Growth

Venture Minerals Limited's earnings per share (EPS) grew 34% per year over the last three years. It achieved revenue growth of 74% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Venture Minerals Limited Been A Good Investment?

We think that the total shareholder return of 64%, over three years, would leave most Venture Minerals 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...

Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 4 warning signs for Venture Minerals (3 don't sit too well with us!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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