In This Article:
In 2016 Ken Brinsden was appointed CEO of Pilbara Minerals Limited (ASX:PLS). First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Pilbara Minerals
How Does Ken Brinsden's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Pilbara Minerals Limited has a market cap of AU$534m, and reported total annual CEO compensation of AU$1.4m for the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$579k. We examined companies with market caps from AU$315m to AU$1.3b, and discovered that the median CEO total compensation of that group was AU$1.2m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Talking in terms of the sector, salary represented approximately 69% of total compensation out of all the companies we analysed, while other remuneration made up 31% of the pie. Pilbara Minerals sets aside a smaller share of compensation for salary, in comparison to the overall industry.
So Ken Brinsden receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. The graphic below shows how CEO compensation at Pilbara Minerals has changed from year to year.
Is Pilbara Minerals Limited Growing?
On average over the last three years, Pilbara Minerals Limited has seen earnings per share (EPS) move in a favourable direction by 16% each year (using a line of best fit). In the last year, its revenue is up 169%.
This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has Pilbara Minerals Limited Been A Good Investment?
With a three year total loss of 36%, Pilbara Minerals Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Ken Brinsden is paid around the same as most CEOs of similar size companies.