Does Nexus Minerals Limited's (ASX:NXM) CEO Salary Reflect Performance?

In This Article:

Andy Tudor became the CEO of Nexus Minerals Limited (ASX:NXM) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Nexus Minerals

How Does Andy Tudor's Compensation Compare With Similar Sized Companies?

Our data indicates that Nexus Minerals Limited is worth AU$5.4m, and total annual CEO compensation was reported as AU$300k for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$251k. We looked at a group of companies with market capitalizations under AU$312m, and the median CEO total compensation was AU$389k.

Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Nexus Minerals. On a sector level, around 69% of total compensation represents salary and 31% is other remuneration. So it seems like there isn't a significant difference between Nexus Minerals and the broader market, in terms of salary allocation in the overall compensation package.

So Andy Tudor receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. You can see a visual representation of the CEO compensation at Nexus Minerals, below.

ASX:NXM CEO Compensation May 18th 2020
ASX:NXM CEO Compensation May 18th 2020

Is Nexus Minerals Limited Growing?

Nexus Minerals Limited has seen earnings per share (EPS) move positively by an average of 13% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 19%.

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 shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Nexus Minerals Limited Been A Good Investment?

With a three year total loss of 38%, Nexus Minerals Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Remuneration for Andy Tudor is close enough to the median pay for a CEO of a similar sized company .