Does Truscott Mining Corporation Limited's (ASX:TRM) CEO Pay Reflect Performance?
The CEO of Truscott Mining Corporation Limited (ASX:TRM) is Peter Smith. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Truscott Mining
How Does Peter Smith's Compensation Compare With Similar Sized Companies?
According to our data, Truscott Mining Corporation Limited has a market capitalization of AU$943k, and paid its CEO total annual compensation worth AU$245k over the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at . We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations under AU$302m, and the median CEO total compensation was AU$380k.
Most shareholders would consider it a positive that Peter Smith takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Truscott Mining, below.
Is Truscott Mining Corporation Limited Growing?
On average over the last three years, Truscott Mining Corporation Limited has shrunk earnings per share by 120% each year (measured with a line of best fit). It achieved revenue growth of 47% over the last year.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Truscott Mining Corporation Limited Been A Good Investment?
Since shareholders would have lost about 67% over three years, some Truscott Mining Corporation Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
It looks like Truscott Mining Corporation Limited pays its CEO less than similar sized companies.
It's well worth noting that while Peter Smith is paid less than most company leaders (at similar sized companies), performance has been somewhat uninspiring, and total returns have been lacking. Many shareholders would probably like to see improvements, but our analysis does not suggest that CEO compensation is too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling Truscott Mining shares (free trial).
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.
