The CEO of Premier African Minerals Limited (LON:PREM) is George Roach. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Premier African Minerals
How Does George Roach's Compensation Compare With Similar Sized Companies?
According to our data, Premier African Minerals Limited has a market capitalization of UK£3.5m, and paid its CEO total annual compensation worth US$240k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at . We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$307k.
So George Roach is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Premier African Minerals has changed over time.
Is Premier African Minerals Limited Growing?
Over the last three years Premier African Minerals Limited has grown its earnings per share (EPS) by an average of 31% per year (using a line of best fit). In the last year, its revenue is up 543%.
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 earnings per share improvement certainly points to the kind of growth I like to see. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Premier African Minerals Limited Been A Good Investment?
Given the total loss of 90% over three years, many shareholders in Premier African Minerals Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
George Roach is paid around what is normal the leaders of comparable size companies.
We'd say the company can boast of its EPS growth, but it's disappointing to see negative shareholder returns over three years. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. So you may want to check if insiders are buying Premier African Minerals shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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