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Is Talisman Mining Limited (ASX:TLM) Excessively Paying Its CEO?

In This Article:

Dan Madden has been the CEO of Talisman Mining Limited (ASX:TLM) since 2016. 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 process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Talisman Mining

How Does Dan Madden's Compensation Compare With Similar Sized Companies?

According to our data, Talisman Mining Limited has a market capitalization of AU$17m, and paid its CEO total annual compensation worth AU$603k over the year to June 2019. That's less than last year. While we always look at total compensation first, we note that the salary component is less, at AU$350k. We examined a group of similar sized companies, with market capitalizations of below AU$290m. The median CEO total compensation in that group is AU$379k.

As you can see, Dan Madden is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Talisman Mining Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Talisman Mining has changed over time.

ASX:TLM CEO Compensation, December 22nd 2019
ASX:TLM CEO Compensation, December 22nd 2019

Is Talisman Mining Limited Growing?

Over the last three years Talisman Mining Limited has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). It achieved revenue growth of 637% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Talisman Mining Limited Been A Good Investment?

Since shareholders would have lost about 5.6% over three years, some Talisman Mining 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...

We compared total CEO remuneration at Talisman Mining Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.