How Much Is Zenith Minerals Limited (ASX:ZNC) CEO Getting Paid?

This article will reflect on the compensation paid to Mick Clifford who has served as CEO of Zenith Minerals Limited (ASX:ZNC) since 2014. This analysis will also assess whether Zenith Minerals pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Zenith Minerals

How Does Total Compensation For Mick Clifford Compare With Other Companies In The Industry?

Our data indicates that Zenith Minerals Limited has a market capitalization of AU$43m, and total annual CEO compensation was reported as AU$265k for the year to June 2020. That's a notable decrease of 10% on last year. We note that the salary portion, which stands at AU$211.7k constitutes the majority of total compensation received by 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. So it looks like Zenith Minerals compensates Mick Clifford in line with the median for the industry. Moreover, Mick Clifford also holds AU$98k worth of Zenith Minerals stock directly under their own name.

On an industry level, roughly 69% of total compensation represents salary and 31% is other remuneration. Zenith Minerals 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.

Zenith Minerals Limited's Growth

Zenith Minerals Limited's earnings per share (EPS) grew 26% per year over the last three years. It achieved revenue growth of 27% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Zenith Minerals Limited Been A Good Investment?

With a three year total loss of 13% for the shareholders, Zenith Minerals Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we noted earlier, Zenith Minerals pays its CEO in line with similar-sized companies belonging to the same industry. On the other hand, the company has logged negative shareholder returns over the previous three years. But on the bright side, EPS growth is positive over the same period. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.

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 Zenith Minerals (1 is a bit concerning!) that you should be aware of before investing here.

Important note: Zenith Minerals 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. 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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