Yahoo Finance How Should Investors Feel About Sunstone Metals Limited's (ASX:STM) CEO Pay?
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Malcolm Norris became the CEO of Sunstone Metals Limited (ASX:STM) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Sunstone Metals
How Does Malcolm Norris's Compensation Compare With Similar Sized Companies?
According to our data, Sunstone Metals Limited has a market capitalization of AU$42m, and pays its CEO total annual compensation worth AU$375k. (This number is for the twelve months until June 2018). We think total compensation is more important but we note that the CEO salary is lower, at AU$322k. We took a group of companies with market capitalizations below AU$291m, and calculated the median CEO total compensation to be AU$358k.
That means Malcolm Norris receives fairly typical remuneration for the CEO of a company that size. 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.
You can see, below, how CEO compensation at Sunstone Metals has changed over time.
Is Sunstone Metals Limited Growing?
On average over the last three years, Sunstone Metals Limited has grown earnings per share (EPS) by 63% each year (using a line of best fit). Its revenue is up 320% over last year.
This demonstrates that the company has been improving recently. A good result. 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 Sunstone Metals Limited Been A Good Investment?
Most shareholders would probably be pleased with Sunstone Metals Limited for providing a total return of 79% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Malcolm Norris is paid around what is normal the leaders of comparable size companies.
The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Sunstone Metals insiders are buying or selling shares.
Important note: Sunstone Metals may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
