Stock Analysis

Our Take On Anglo Asian Mining PLC's (LON:AAZ) CEO Salary

AIM:AAZ
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Mohammed Vaziri has been the CEO of Anglo Asian Mining PLC (LON:AAZ) since 2008. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Anglo Asian Mining

How Does Mohammed Vaziri's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Anglo Asian Mining PLC has a market cap of UK£168m, and reported total annual CEO compensation of US$663k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at . Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$596k.

So Mohammed Vaziri receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Anglo Asian Mining, below.

AIM:AAZ CEO Compensation, January 15th 2020
AIM:AAZ CEO Compensation, January 15th 2020

Is Anglo Asian Mining PLC Growing?

Over the last three years Anglo Asian Mining PLC has grown its earnings per share (EPS) by an average of 94% per year (using a line of best fit). In the last year, its revenue is up 14%.

This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Anglo Asian Mining PLC Been A Good Investment?

Most shareholders would probably be pleased with Anglo Asian Mining PLC for providing a total return of 598% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Mohammed Vaziri is paid around the same as most CEOs of similar size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance! So you may want to check if insiders are buying Anglo Asian Mining shares with their own money (free access).

Important note: Anglo Asian Mining may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.