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We Think Shareholders Will Probably Be Generous With Perseus Mining Limited's (ASX:PRU) CEO Compensation

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We have been pretty impressed with the performance at Perseus Mining Limited (ASX:PRU) recently and CEO Jeff Quartermaine deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 25 November 2021. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for Perseus Mining

How Does Total Compensation For Jeff Quartermaine Compare With Other Companies In The Industry?

At the time of writing, our data shows that Perseus Mining Limited has a market capitalization of AU$2.3b, and reported total annual CEO compensation of AU$1.7m for the year to June 2021. We note that's a small decrease of 5.5% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$719k.

For comparison, other companies in the same industry with market capitalizations ranging between AU$1.4b and AU$4.4b had a median total CEO compensation of AU$1.4m. From this we gather that Jeff Quartermaine is paid around the median for CEOs in the industry. Furthermore, Jeff Quartermaine directly owns AU$3.8m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2021

2020

Proportion (2021)

Salary

AU$719k

AU$716k

43%

Other

AU$944k

AU$1.0m

57%

Total Compensation

AU$1.7m

AU$1.8m

100%

On an industry level, around 59% of total compensation represents salary and 41% is other remuneration. In Perseus Mining's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
ceo-compensation

Perseus Mining Limited's Growth

Perseus Mining Limited's earnings per share (EPS) grew 100% per year over the last three years. Its revenue is up 15% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Perseus Mining Limited Been A Good Investment?

Most shareholders would probably be pleased with Perseus Mining Limited for providing a total return of 384% over three years. 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.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at 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.

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 Perseus Mining that investors should look into moving forward.

Important note: Perseus Mining is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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