Key Things To Understand About Mineral Commodities' (ASX:MRC) CEO Pay Cheque

Mark Caruso has been the CEO of Mineral Commodities Ltd (ASX:MRC) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Mineral Commodities

How Does Total Compensation For Mark Caruso Compare With Other Companies In The Industry?

At the time of writing, our data shows that Mineral Commodities Ltd has a market capitalization of AU$114m, and reported total annual CEO compensation of AU$1.3m for the year to December 2019. That's a slight decrease of 3.5% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at AU$580k.

For comparison, other companies in the industry with market capitalizations below AU$279m, reported a median total CEO compensation of AU$307k. Hence, we can conclude that Mark Caruso is remunerated higher than the industry median. Moreover, Mark Caruso also holds AU$391k worth of Mineral Commodities stock directly under their own name.

On an industry level, around 70% of total compensation represents salary and 30% is other remuneration. Mineral Commodities sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Mineral Commodities Ltd's Growth

Over the past three years, Mineral Commodities Ltd has seen its earnings per share (EPS) grow by 26% per year. In the last year, its revenue is up 12%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Mineral Commodities Ltd Been A Good Investment?

We think that the total shareholder return of 131%, over three years, would leave most Mineral Commodities Ltd shareholders smiling. 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.

To Conclude...

As we noted earlier, Mineral Commodities pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Importantly though, earnings per share growth and shareholder returns are very impressive over the last three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. And given most shareholders are probably very happy with recent returns, they might even think that Mark deserves a raise!

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Mineral Commodities that investors should think about before committing capital to this stock.

Switching gears from Mineral Commodities, 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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