Leon Coetzer became the CEO of Jubilee Metals Group PLC (LON:JLP) in 2010, and we think it's a good time to look at 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 Jubilee Metals Group.
See our latest analysis for Jubilee Metals Group
Comparing Jubilee Metals Group PLC's CEO Compensation With the industry
Our data indicates that Jubilee Metals Group PLC has a market capitalization of UK£286m, and total annual CEO compensation was reported as UK£461k for the year to June 2020. That's a notable increase of 64% on last year. Notably, the salary of UK£461k is the entirety of the CEO compensation.
In comparison with other companies in the industry with market capitalizations ranging from UK£147m to UK£590m, the reported median CEO total compensation was UK£702k. In other words, Jubilee Metals Group pays its CEO lower than the industry median.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | UK£461k | UK£280k | 100% |
| Other | - | - | - |
| Total Compensation | UK£461k | UK£280k | 100% |
On an industry level, around 67% of total compensation represents salary and 33% is other remuneration. On a company level, Jubilee Metals Group prefers to reward its CEO through a salary, opting not to pay Leon Coetzer through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Jubilee Metals Group PLC's Growth
Jubilee Metals Group PLC's earnings per share (EPS) grew 122% per year over the last three years. Its revenue is up 131% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Jubilee Metals Group PLC Been A Good Investment?
Most shareholders would probably be pleased with Jubilee Metals Group PLC for providing a total return of 265% 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.
To Conclude...
Jubilee Metals Group pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we touched on above, Jubilee Metals Group PLC is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. When taking into account the company's strong EPS growth over the past three years, it appears CEO compensation is modest. And given most shareholders are probably very happy with recent shareholder returns, they might even think Leon deserves a raise!
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which is significant) in Jubilee Metals Group we think you should know about.
Important note: Jubilee Metals Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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About AIM:JLP
Jubilee Metals Group
Jubilee Metals Group plc operates as a diversified metals processing and recovery company.
Excellent balance sheet with reasonable growth potential.
