Here's Why Shareholders Should Examine Sylvania Platinum Limited's (LON:SLP) CEO Compensation Package More Closely

Key Insights

• Sylvania Platinum to hold its Annual General Meeting on 29th of November
• Total pay for CEO Jaco Prinsloo includes US$302.5k salary
• The total compensation is similar to the average for the industry
• Sylvania Platinum's three-year loss to shareholders was 38% while its EPS was down 58% over the past three years

The results at Sylvania Platinum Limited (LON:SLP) have been quite disappointing recently and CEO Jaco Prinsloo bears some responsibility for this. At the upcoming AGM on 29th of November, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for Sylvania Platinum

Comparing Sylvania Platinum Limited's CEO Compensation With The Industry

Our data indicates that Sylvania Platinum Limited has a market capitalization of UK£120m, and total annual CEO compensation was reported as US$559k for the year to June 2024. That's a notable increase of 16% on last year. In particular, the salary of US$302.5k, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the British Metals and Mining industry with market capitalizations ranging between UK£79m and UK£318m had a median total CEO compensation of US$735k. This suggests that Sylvania Platinum remunerates its CEO largely in line with the industry average. What's more, Jaco Prinsloo holds UK£708k worth of shares in the company in their own name.

On an industry level, around 79% of total compensation represents salary and 21% is other remuneration. Sylvania Platinum pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Sylvania Platinum Limited's Growth

Sylvania Platinum Limited has reduced its earnings per share by 58% a year over the last three years. It saw its revenue drop 37% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Sylvania Platinum Limited Been A Good Investment?

The return of -38% over three years would not have pleased Sylvania Platinum Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 2 warning signs for Sylvania Platinum (1 is a bit concerning!) that you should be aware of before investing here.

Switching gears from Sylvania Platinum, 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.