In This Article:
Errol Smart became the CEO of Orion Minerals Limited (ASX:ORN) in 2012. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.
View our latest analysis for Orion Minerals
How Does Errol Smart's Compensation Compare With Similar Sized Companies?
Our data indicates that Orion Minerals Limited is worth AU$74m, and total annual CEO compensation was reported as AU$495k for the year to June 2019. That's a notable increase of 55% on last year. We think total compensation is more important but we note that the CEO salary is lower, at AU$300k. We took a group of companies with market capitalizations below AU$294m, and calculated the median CEO total compensation to be AU$374k.
It would therefore appear that Orion Minerals Limited pays Errol Smart more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Orion Minerals has changed over time.
Is Orion Minerals Limited Growing?
Orion Minerals Limited has increased its earnings per share (EPS) by an average of 14% a year, over the last three years (using a line of best fit). Its revenue is up 265% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. 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 might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Orion Minerals Limited Been A Good Investment?
Orion Minerals Limited has served shareholders reasonably well, with a total return of 18% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
We compared the total CEO remuneration paid by Orion Minerals Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.