In This Article:
Wade Johnson has been the CEO of Lefroy Exploration Limited (ASX:LEX) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Lefroy Exploration.
See our latest analysis for Lefroy Exploration
How Does Total Compensation For Wade Johnson Compare With Other Companies In The Industry?
Our data indicates that Lefroy Exploration Limited has a market capitalization of AU$24m, and total annual CEO compensation was reported as AU$283k for the year to June 2020. We note that's a decrease of 11% compared to last year. Notably, the salary which is AU$220.0k, represents most of the total compensation being paid.
For comparison, other companies in the industry with market capitalizations below AU$259m, reported a median total CEO compensation of AU$305k. So it looks like Lefroy Exploration compensates Wade Johnson in line with the median for the industry. Moreover, Wade Johnson also holds AU$841k worth of Lefroy Exploration stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$220k | AU$220k | 78% |
| Other | AU$63k | AU$99k | 22% |
| Total Compensation | AU$283k | AU$319k | 100% |
On an industry level, around 69% of total compensation represents salary and 31% is other remuneration. It's interesting to note that Lefroy Exploration pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Lefroy Exploration Limited's Growth
Over the last three years, Lefroy Exploration Limited has shrunk its earnings per share by 21% per year. Its revenue is up 284% over the last year.
The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Lefroy Exploration Limited Been A Good Investment?
Most shareholders would probably be pleased with Lefroy Exploration Limited for providing a total return of 38% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.