Mark Zeptner has been CEO of Ramelius Resources Limited (ASX: RMS) since 2014. This report will first examine CEO compensation levels compared to CEO compensation in companies of similar size. After that, we will consider the growth of the business. Finally, we will reflect on the performance of ordinary shareholders in recent years, as a secondary measure of performance. This process should give us an idea of how well the CEO is paid.
See our latest analysis for Ramelius Resources
How does Mark Zeptner’s compensation compare to that of companies of similar size?
According to our data, Ramelius Resources Limited has a market capitalization of 796 million Australian dollars and paid its CEO a total annual compensation worth 999,000 Australian dollars over the year until June 2019. Although this analysis focuses on total compensation, it should be noted that the salary is lower, valued at AU $ 522,000. As part of our analysis, we examined companies in the same territory, with market capitalizations of AU $ 317 million to AU $ 1.3 billion. The CEO’s total median compensation was AU $ 1.2 million.
Next, let’s break down the compensation mixes to understand how the industry and the business compare. At the sectoral level, around 69% of total compensation represents salary and 31% other compensation. Ramelius Resources does not reserve a larger part of the remuneration in the form of wages, maintaining the same rate as the wider market.
So Mark Zeptner is paid around the average of the companies we looked at. While this data point is not particularly informative on its own, it makes more sense when viewed with the performance of the business. You can see below how the compensation of CEOs at Ramelius Resources has changed over time.
Is Ramelius Resources Limited growing up?
On average over the past three years, Ramelius Resources Limited has seen earnings per share (EPS) move in a favorable direction of 7.3% each year (using a line of best fit). Its turnover is down 13% compared to last year.
I would prefer to see revenue growth, but I am satisfied with the growth in EPS. It’s hard to come to a conclusion about the company’s performance at the moment. It may be the one to watch. It might be important to check out this free visual representation of what analysts expect for the future.
Is Ramelius Resources Limited a good investment?
I think the total shareholder return of 133% over three years would make most Ramelius Resources Limited shareholders smile. This good performance could mean that some shareholders do not care that the CEO is paid more than normal for a company of its size.
Mark Zeptner is paid around what is normal for managers of companies of comparable size.
While we would like to see improved growth measures, there is no doubt that total returns have been excellent over the past three years. We can therefore conclude that on this analysis, the compensation of the CEO seems fairly good. The shift in speed of the CEO pays a second, we chose 2 warning signs for Ramelius Resources that investors need to know in a dynamic business environment.
Important note: Ramelius Resources may not be the best security to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that merits correction, please contact the publisher at [email protected] This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell securities and does not take into account your objectives or your financial situation. Simply Wall St has no position in the stocks mentioned.
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