What Can We Make Of IronRidge Resources' (LON:IRR) CEO Compensation?

The CEO of IronRidge Resources Limited (LON:IRR) is Vince Mascolo, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for IronRidge Resources.

View our latest analysis for IronRidge Resources

How Does Total Compensation For Vince Mascolo Compare With Other Companies In The Industry?

According to our data, IronRidge Resources Limited has a market capitalization of UK£62m, and paid its CEO total annual compensation worth AU$1.7m over the year to June 2020. We note that's a decrease of 14% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$375k.

For comparison, other companies in the industry with market capitalizations below UK£150m, reported a median total CEO compensation of AU$255k. Accordingly, our analysis reveals that IronRidge Resources Limited pays Vince Mascolo north of the industry median. Furthermore, Vince Mascolo directly owns UK£2.3m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 65% of total compensation represents salary and 35% is other remuneration. In IronRidge Resources' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

IronRidge Resources Limited's Growth

Over the past three years, IronRidge Resources Limited has seen its earnings per share (EPS) grow by 17% per year. Its revenue is up 226% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 IronRidge Resources Limited Been A Good Investment?

With a three year total loss of 48% for the shareholders, IronRidge Resources Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we noted earlier, IronRidge Resources pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, the EPS growth is certainly impressive, but it's disappointing to see negative shareholder returns over the same period. Considering overall performance, we can't say Vince is underpaid, in fact compensation is definitely on the higher side.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 6 warning signs for IronRidge Resources (of which 3 don't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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