Our View On Central Asia Metals' (LON:CAML) CEO Pay

In This Article:

Nigel Robinson has been the CEO of Central Asia Metals plc (LON:CAML) since 2018, 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 Central Asia Metals.

Check out our latest analysis for Central Asia Metals

Comparing Central Asia Metals plc's CEO Compensation With the industry

At the time of writing, our data shows that Central Asia Metals plc has a market capitalization of UK£290m, and reported total annual CEO compensation of US$904k for the year to December 2019. We note that's an increase of 12% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$446k.

In comparison with other companies in the industry with market capitalizations ranging from UK£154m to UK£617m, the reported median CEO total compensation was US$1.0m. So it looks like Central Asia Metals compensates Nigel Robinson in line with the median for the industry. What's more, Nigel Robinson holds UK£1.2m worth of shares in the company in their own name.

Component

2019

2018

Proportion (2019)

Salary

US$446k

US$428k

49%

Other

US$458k

US$379k

51%

Total Compensation

US$904k

US$807k

100%

Talking in terms of the industry, salary represented approximately 64% of total compensation out of all the companies we analyzed, while other remuneration made up 36% of the pie. Central Asia Metals pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
AIM:CAML CEO Compensation November 1st 2020

A Look at Central Asia Metals plc's Growth Numbers

Over the last three years, Central Asia Metals plc has shrunk its earnings per share by 5.1% per year. It saw its revenue drop 14% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Central Asia Metals plc Been A Good Investment?

Since shareholders would have lost about 22% over three years, some Central Asia Metals plc investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.