A Quick Analysis On Empire Metals' (LON:EEE) CEO Salary

Mike Struthers has been the CEO of Empire Metals Limited (LON:EEE) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Empire Metals

How Does Total Compensation For Mike Struthers Compare With Other Companies In The Industry?

According to our data, Empire Metals Limited has a market capitalization of UK£11m, and paid its CEO total annual compensation worth UK£63k over the year to December 2019. Notably, that's a decrease of 24% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth UK£63k.

In comparison with other companies in the industry with market capitalizations under UK£150m, the reported median total CEO compensation was UK£152k. In other words, Empire Metals pays its CEO lower than the industry median.

Talking in terms of the industry, salary represented approximately 67% of total compensation out of all the companies we analyzed, while other remuneration made up 33% of the pie. At the company level, Empire Metals pays Mike Struthers solely through a salary, preferring to go down a conventional route. 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.

Empire Metals Limited's Growth

Empire Metals Limited has seen its earnings per share (EPS) increase by 31% a year over the past three years. In the last year, its revenue is down 87%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Empire Metals Limited Been A Good Investment?

Since shareholders would have lost about 75% over three years, some Empire Metals Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Empire Metals rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we noted earlier, Empire Metals pays its CEO lower than the norm for similar-sized companies belonging to the same industry. However, the EPS growth over three years is certainly impressive. Considering EPS are on the up, we would say Mike is compensated fairly. But shareholders will likely want to hold off on any raise for Mike until investor returns are positive.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 5 warning signs for Empire Metals (3 are significant!) 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. 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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