What Did Central Asia Metals' (LON:CAML) CEO Take Home Last Year?

This article will reflect on the compensation paid to Nigel Robinson who has served as CEO of Central Asia Metals plc (LON:CAML) since 2018. This analysis will also assess whether Central Asia Metals pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Central Asia Metals

How Does Total Compensation For Nigel Robinson Compare With Other Companies In The Industry?

According to our data, Central Asia Metals plc has a market capitalization of UK£334m, and paid its CEO total annual compensation worth US$904k over the year to December 2019. We note that's an increase of 12% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$446k.

For comparison, other companies in the same industry with market capitalizations ranging between UK£150m and UK£602m had a median total CEO compensation of US$980k. This suggests that Central Asia Metals remunerates its CEO largely in line with the industry average. Moreover, Nigel Robinson also holds UK£1.3m worth of Central Asia Metals stock directly under their own name.

On an industry level, around 66% of total compensation represents salary and 34% is other remuneration. Central Asia Metals pays a modest slice of remuneration through salary, as compared 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 Central Asia Metals plc's Growth Numbers

Over the last three years, Central Asia Metals plc has shrunk its earnings per share by 5.1% per year. In the last year, its revenue is down 14%.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Central Asia Metals plc Been A Good Investment?

Since shareholders would have lost about 19% over three years, some Central Asia Metals plc investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we noted earlier, Central Asia Metals pays its CEO in line with similar-sized companies belonging to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Central Asia Metals that investors should think about before committing capital to this stock.

Switching gears from Central Asia Metals, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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