How Is Venture Minerals' (ASX:VMS) CEO Paid Relative To Peers?

Andrew Radonjic has been the CEO of Venture Minerals Limited (ASX:VMS) since 2017, 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.

Check out our latest analysis for Venture Minerals

How Does Total Compensation For Andrew Radonjic Compare With Other Companies In The Industry?

At the time of writing, our data shows that Venture Minerals Limited has a market capitalization of AU$34m, and reported total annual CEO compensation of AU$270k for the year to June 2020. We note that's a small decrease of 6.0% on last year. In particular, the salary of AU$214.8k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under AU$283m, the reported median total CEO compensation was AU$312k. So it looks like Venture Minerals compensates Andrew Radonjic in line with the median for the industry. What's more, Andrew Radonjic holds AU$389k worth of shares in the company in their own name.

Speaking on an industry level, nearly 70% of total compensation represents salary, while the remainder of 30% is other remuneration. Venture Minerals pays out 79% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Venture Minerals Limited's Growth Numbers

Venture Minerals Limited has seen its earnings per share (EPS) increase by 12% a year over the past three years. It achieved revenue growth of 8.4% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Venture Minerals Limited Been A Good Investment?

We think that the total shareholder return of 44%, over three years, would leave most Venture Minerals Limited 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.

In Summary...

As we touched on above, Venture Minerals Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. The company is growing EPS and total shareholder returns have been pleasing. Indeed, many might consider that Andrew is compensated rather modestly, given the solid company performance! Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 4 warning signs (and 2 which are a bit unpleasant) in Venture Minerals we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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