Scott Williamson has been the CEO of Blackstone Minerals Limited (ASX:BSX) since 2017, 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 Blackstone Minerals.
How Does Total Compensation For Scott Williamson Compare With Other Companies In The Industry?
According to our data, Blackstone Minerals Limited has a market capitalization of AU$135m, and paid its CEO total annual compensation worth AU$646k over the year to June 2020. Notably, that's an increase of 74% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at AU$237k.
In comparison with other companies in the industry with market capitalizations under AU$279m, the reported median total CEO compensation was AU$303k. This suggests that Scott Williamson is paid more than the median for the industry. What's more, Scott Williamson holds AU$3.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Talking in terms of the industry, salary represented approximately 69% of total compensation out of all the companies we analyzed, while other remuneration made up 31% of the pie. Blackstone Minerals pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Blackstone Minerals Limited's Growth Numbers
Over the past three years, Blackstone Minerals Limited has seen its earnings per share (EPS) grow by 35% per year. In the last year, its revenue is up 470%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Blackstone Minerals Limited Been A Good Investment?
We think that the total shareholder return of 47%, over three years, would leave most Blackstone Minerals Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
As we noted earlier, Blackstone Minerals pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, Blackstone Minerals has produced strong EPS growth and shareholder returns over the last three years. As a result of the excellent all-round performance of the company, we believe CEO compensation is fair. And given most shareholders are probably very happy with recent returns, they might even think that Scott deserves a raise!
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 6 warning signs for Blackstone Minerals you should be aware of, and 3 of them can't be ignored.
Important note: Blackstone Minerals is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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