The CEO of Premier African Minerals Limited (LON:PREM) is George Roach. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.
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£13m, and paid its CEO total annual compensation worth US$240k over the year to December 2018. 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$336k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Talking in terms of the sector, salary represented approximately 70% of total compensation out of all the companies we analysed, while other remuneration made up 30% of the pie. Speaking on a company level, Premier African Minerals does not pay a salary to George Roach, preferring to remunerate the executive through non-salary compensation.
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 seen earnings per share (EPS) move in a positive direction by an average of 35% per year (using a line of best fit). In the last year, the company lost virtually all of its revenue.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Premier African Minerals Limited Been A Good Investment?
With a three year total loss of 81%, Premier African Minerals Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Remuneration for George Roach is close enough to the median pay for a CEO of a similar sized company .
We like that the company is growing EPS, but it's disappointing to see negative shareholder returns over three years. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. On another note, Premier African Minerals has 6 warning signs (and 2 which make us uncomfortable) we think you should know about.
Important note: Premier African Minerals may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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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. Thank you for reading.