Yahoo Finance Is Bushveld Minerals Limited (LON:BMN) Overpaying Its CEO?
Fortune Mojapelo became the CEO of Bushveld Minerals Limited (LON:BMN) in 2012. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
Check out our latest analysis for Bushveld Minerals
How Does Fortune Mojapelo's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Bushveld Minerals Limited has a market cap of UK£225m, and reported total annual CEO compensation of US$2.7m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$340k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO total compensation was US$603k.
As you can see, Fortune Mojapelo is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Bushveld Minerals Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Bushveld Minerals has changed over time.
Is Bushveld Minerals Limited Growing?
Over the last three years Bushveld Minerals Limited has grown its earnings per share (EPS) by an average of 107% per year (using a line of best fit). It achieved revenue growth of 114% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Bushveld Minerals Limited Been A Good Investment?
I think that the total shareholder return of 916%, over three years, would leave most Bushveld Minerals Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We compared total CEO remuneration at Bushveld Minerals Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if Bushveld Minerals insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
