Performance at BCI Minerals Limited (ASX:BCI) has been reasonably good and CEO Alwyn Vorster has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 25 November 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for BCI Minerals

How Does Total Compensation For Alwyn Vorster Compare With Other Companies In The Industry?

Our data indicates that BCI Minerals Limited has a market capitalization of AU$288m, and total annual CEO compensation was reported as AU$960k for the year to June 2021. Notably, that's an increase of 35% over the year before. We note that the salary of AU$499.3k makes up a sizeable portion of the total compensation received by the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between AU$138m and AU$550m had a median total CEO compensation of AU$620k. Hence, we can conclude that Alwyn Vorster is remunerated higher than the industry median. What's more, Alwyn Vorster holds AU$2.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component 2021 2020 Proportion (2021) Salary AU$499k AU$512k 52% Other AU$460k AU$201k 48% Total Compensation AU$960k AU$713k 100%

Talking in terms of the industry, salary represented approximately 59% of total compensation out of all the companies we analyzed, while other remuneration made up 41% of the pie. BCI Minerals sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance. ceo-compensation

BCI Minerals Limited's Growth

Over the past three years, BCI Minerals Limited has seen its earnings per share (EPS) grow by 66% per year. Its revenue is up 109% over the last year.



Overall this is a positive result for shareholders, showing that the company has improved in recent 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 BCI Minerals Limited Been A Good Investment?

Boasting a total shareholder return of 263% over three years, BCI Minerals Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for BCI Minerals (2 are concerning!) that you should be aware of before investing here.

Switching gears from BCI Minerals, if you're hunting for a pristine balance sheet and premium returns, this freelist of high return, low debt companies is a great place to look.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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