We Think Shareholders Will Probably Be Generous With Serabi Gold plc's (LON:SRB) CEO Compensation

Key Insights

• Serabi Gold will host its Annual General Meeting on 26th of June
• Total pay for CEO Mike Hodgson includes US$427.9k salary
• The total compensation is similar to the average for the industry
• Serabi Gold's EPS grew by 49% over the past three years while total shareholder return over the past three years was 303%

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We have been pretty impressed with the performance at Serabi Gold plc (LON:SRB) recently and CEO Mike Hodgson deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 26th of June. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

See our latest analysis for Serabi Gold

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

Our data indicates that Serabi Gold plc has a market capitalization of UK£134m, and total annual CEO compensation was reported as US$675k for the year to December 2024. That's just a smallish increase of 6.4% on last year. We note that the salary portion, which stands at US$427.9k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the British Metals and Mining industry with market capitalizations ranging between UK£75m and UK£298m had a median total CEO compensation of US$675k. From this we gather that Mike Hodgson is paid around the median for CEOs in the industry. Furthermore, Mike Hodgson directly owns UK£124k worth of shares in the company.

On an industry level, around 63% of total compensation represents salary and 37% is other remuneration. Serabi Gold is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Serabi Gold plc's Growth

Over the past three years, Serabi Gold plc has seen its earnings per share (EPS) grow by 49% per year. In the last year, its revenue is up 44%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Serabi Gold plc Been A Good Investment?

We think that the total shareholder return of 303%, over three years, would leave most Serabi Gold plc shareholders smiling. 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...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Serabi Gold that investors should look into moving forward.

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. 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.