In This Article:
Lindsay Reed has been the CEO of Minbos Resources Limited (ASX:MNB) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Minbos Resources
How Does Lindsay Reed’s Compensation Compare With Similar Sized Companies?
According to our data, Minbos Resources Limited has a market capitalization of AU$5.7m, and pays its CEO total annual compensation worth AU$268k. (This number is for the twelve months until 2018). That’s less than last year. While we always look at total compensation first, we note that the salary component is less, at AU$250k. We looked at a group of companies with market capitalizations under AU$272m, and the median CEO compensation was AU$359k.
That means Lindsay Reed receives fairly typical remuneration for the CEO of a company that size. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Minbos Resources has changed over time.
Is Minbos Resources Limited Growing?
Minbos Resources Limited has reduced its earnings per share by an average of 42% a year, over the last three years. Its revenue is down -49% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Minbos Resources Limited Been A Good Investment?
With a three year total loss of 47%, Minbos Resources Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
Remuneration for Lindsay Reed is close enough to the median pay for a CEO of a similar sized company .
Returns have been disappointing and the company is not growing its earnings per share. Few would argue that it’s wise for the company to pay any more, before returns improve. Whatever your view on compensation, you might want to check if insiders are buying or selling Minbos Resources shares (free trial).