Peter Williams became the CEO of Aus Tin Mining Limited (ASX:ANW) in 2013, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Aus Tin Mining

Comparing Aus Tin Mining Limited's CEO Compensation With the industry

Our data indicates that Aus Tin Mining Limited has a market capitalization of AU$3.7m, and total annual CEO compensation was reported as AU$268k for the year to June 2020. We note that's a small decrease of 7.7% on last year. We note that the salary portion, which stands at AU$250.6k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under AU$279m, the reported median total CEO compensation was AU$313k. From this we gather that Peter Williams is paid around the median for CEOs in the industry.

On an industry level, roughly 70% of total compensation represents salary and 30% is other remuneration. Aus Tin Mining pays out 93% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Aus Tin Mining Limited's Growth

Aus Tin Mining Limited has reduced its earnings per share by 6.4% a year over the last three years. In the last year, its revenue is up 357%.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Aus Tin Mining Limited Been A Good Investment?

With a three year total loss of 89% for the shareholders, Aus Tin Mining Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary…

As previously discussed, Peter is compensated close to the median for companies of its size, and which belong to the same industry. But revenue growth seems to be inching northward, a heartening sign for the company. Contrarily, shareholder returns are in the red over the same stretch. EPS growth is also negative, adding insult to injury. We'd say CEO compensation isn't unfair, but shareholders may be wary of a bump in pay before the company substantially improves overall performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 7 warning signs (and 4 which are a bit concerning) in Aus Tin Mining we think you should know about.

Important note: Aus Tin Mining 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.