We Discuss Whether Polymetal International plc's (LON:POLY) CEO Is Due For A Pay Rise

The impressive results at Polymetal International plc (LON:POLY) recently will be great news for shareholders. At the upcoming AGM on 26 April 2021, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

See our latest analysis for Polymetal International

How Does Total Compensation For Vitaly Nesis Compare With Other Companies In The Industry?

According to our data, Polymetal International plc has a market capitalization of UK£7.3b, and paid its CEO total annual compensation worth US$1.8m over the year to December 2020. Notably, that's an increase of 92% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$384k.

In comparison with other companies in the industry with market capitalizations over UK£5.8b , the reported median total CEO compensation was US$3.3m. In other words, Polymetal International pays its CEO lower than the industry median. Furthermore, Vitaly Nesis directly owns UK£52m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	US$384k	US$434k	22%
Other	US$1.4m	US$487k	78%
Total Compensation	US$1.8m	US$921k	100%

On an industry level, around 64% of total compensation represents salary and 36% is other remuneration. It's interesting to note that Polymetal International allocates a smaller portion of compensation to salary 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.

Polymetal International plc's Growth

Polymetal International plc's earnings per share (EPS) grew 48% per year over the last three years. Its revenue is up 28% 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 Polymetal International plc Been A Good Investment?

Most shareholders would probably be pleased with Polymetal International plc for providing a total return of 155% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Polymetal International that you should be aware of before investing.

Switching gears from Polymetal International, 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. 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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