Simon Noon has been the CEO of Pacifico Minerals Limited (ASX:PMY) since 2013. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. 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.
View our latest analysis for Pacifico Minerals
How Does Simon Noon’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Pacifico Minerals Limited has a market cap of AU$8.1m, and is paying total annual CEO compensation of AU$217k. (This number is for the twelve months until 2018). Notably, that’s an increase of 8.2% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at AU$177k. We took a group of companies with market capitalizations below AU$272m, and calculated the median CEO compensation to be AU$359k.
Most shareholders would consider it a positive that Simon Noon takes less compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Pacifico Minerals has changed over time.
Is Pacifico Minerals Limited Growing?
Pacifico Minerals Limited has increased its earnings per share (EPS) by an average of 33% a year, over the last three years It achieved revenue growth of 342% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Pacifico Minerals Limited Been A Good Investment?
Given the total loss of 29% over three years, many shareholders in Pacifico Minerals Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
Pacifico Minerals Limited is currently paying its CEO below what is normal for companies of its size. Many would consider this to indicate that the pay is modest since the business is growing. Unfortunately, some shareholders may be disappointed with their returns, given the company’s performance over the last three years. So while we would not say that Simon Noon is generously paid, it would be good to see an improvement in business performance before too an increase in pay.