Justin Virgin is the CEO of Terrain Minerals Limited (ASX:TMX). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Terrain Minerals

How Does Justin Virgin's Compensation Compare With Similar Sized Companies?

Our data indicates that Terrain Minerals Limited is worth AU$2.9m, and total annual CEO compensation was reported as AU$126k for the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$115k. We examined a group of similar sized companies, with market capitalizations of below AU$318m. The median CEO total compensation in that group is AU$403k.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see, below, how CEO compensation at Terrain Minerals has changed over time.

Is Terrain Minerals Limited Growing?

Over the last three years Terrain Minerals Limited has grown its earnings per share (EPS) by an average of 24% per year (using a line of best fit). In the last year, its revenue is down 66%.

This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Terrain Minerals Limited Been A Good Investment?

Since shareholders would have lost about 69% over three years, some Terrain Minerals Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

It looks like Terrain Minerals Limited pays its CEO less than similar sized companies.

Considering the underlying business is growing earnings, this would suggest the pay is modest. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. We're not critical of the remuneration Justin Virgin receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. Shifting gears from CEO pay for a second, we've spotted 4 warning signs for Terrain Minerals you should be aware of, and 2 of them don't sit too well with us.