Shareholders Will Probably Hold Off On Increasing AfriTin Mining Limited's (LON:ATM) CEO Compensation For The Time Being

CEO Anthony Viljoen has done a decent job of delivering relatively good performance at AfriTin Mining Limited (LON:ATM) recently. As shareholders go into the upcoming AGM on 25 August 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for AfriTin Mining

How Does Total Compensation For Anthony Viljoen Compare With Other Companies In The Industry?

According to our data, AfriTin Mining Limited has a market capitalization of UK£58m, and paid its CEO total annual compensation worth UK£289k over the year to February 2021. That's a notable increase of 51% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at UK£134k.

For comparison, other companies in the industry with market capitalizations below UK£145m, reported a median total CEO compensation of UK£164k. Accordingly, our analysis reveals that AfriTin Mining Limited pays Anthony Viljoen north of the industry median. What's more, Anthony Viljoen holds UK£291k worth of shares in the company in their own name.

Component	2021	2020	Proportion (2021)
Salary	UK£134k	UK£126k	46%
Other	UK£155k	UK£65k	54%
Total Compensation	UK£289k	UK£191k	100%

Talking in terms of the industry, salary represented approximately 61% of total compensation out of all the companies we analyzed, while other remuneration made up 39% of the pie. In AfriTin Mining's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at AfriTin Mining Limited's Growth Numbers

AfriTin Mining Limited has reduced its earnings per share by 2.0% a year over the last three years. In the last year, its revenue is up 7,121%.

Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has AfriTin Mining Limited Been A Good Investment?

Most shareholders would probably be pleased with AfriTin Mining Limited for providing a total return of 54% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The overall company performance has been commendable, however there are still areas for improvement. We still think that some shareholders will be hesitant of increasing CEO pay until EPS growth improves, since they are already paid higher than the industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 5 warning signs for AfriTin Mining (2 are a bit concerning!) that you should be aware of before investing here.

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.
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