What Does Anglo Pacific Group's (LON:APF) CEO Pay Reveal?

Julian Treger has been the CEO of Anglo Pacific Group plc (LON:APF) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Anglo Pacific Group.

See our latest analysis for Anglo Pacific Group

Comparing Anglo Pacific Group plc's CEO Compensation With the industry

At the time of writing, our data shows that Anglo Pacific Group plc has a market capitalization of UK£185m, and reported total annual CEO compensation of UK£737k for the year to December 2019. That's a fairly small increase of 5.9% over the previous year. Notably, the salary which is UK£396.0k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations ranging from UK£77m to UK£307m, the reported median CEO total compensation was UK£1.1m. This suggests that Julian Treger is paid below the industry median.

On an industry level, around 71% of total compensation represents salary and 29% is other remuneration. It's interesting to note that Anglo Pacific Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Anglo Pacific Group plc's Growth

Over the last three years, Anglo Pacific Group plc has shrunk its earnings per share by 12% per year. In the last year, its revenue is down 27%.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Anglo Pacific Group plc Been A Good Investment?

Given the total shareholder loss of 12% over three years, many shareholders in Anglo Pacific Group plc are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we touched on above, Anglo Pacific Group plc is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. EPS growth has failed to impress us, and the same can be said about shareholder returns. It's tough to say that Julian is earning a very high compensation, but shareholders will likely want to see healthier investor returns before agreeing that a raise is in order.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Anglo Pacific Group that investors should be aware of in a dynamic business environment.

Switching gears from Anglo Pacific Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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