Raleigh Finlayson became the CEO of Saracen Mineral Holdings Limited (ASX:SAR) in 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.
See our latest analysis for Saracen Mineral Holdings
How Does Raleigh Finlayson's Compensation Compare With Similar Sized Companies?
Our data indicates that Saracen Mineral Holdings Limited is worth AU$4.9b, and total annual CEO compensation was reported as AU$1.9m for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at AU$612k. 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 from AU$3.1b to AU$9.8b, and the median CEO total compensation was AU$3.4m.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Saracen Mineral Holdings. On a sector level, around 69% of total compensation represents salary and 31% is other remuneration. Saracen Mineral Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry.
Most shareholders would consider it a positive that Raleigh Finlayson 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, below, how CEO compensation at Saracen Mineral Holdings has changed over time.
Is Saracen Mineral Holdings Limited Growing?
Over the last three years Saracen Mineral Holdings Limited has seen earnings per share (EPS) move in a positive direction by an average of 40% per year (using a line of best fit). In the last year, its revenue is up 25%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. You might want to check this free visual report on analyst forecasts for future earnings.
Has Saracen Mineral Holdings Limited Been A Good Investment?
I think that the total shareholder return of 385%, over three years, would leave most Saracen Mineral Holdings Limited shareholders smiling. 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.