Performance at Greenland Minerals Limited (ASX:GGG) has been reasonably good and CEO John Mair has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 26 May 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Greenland Minerals

Comparing Greenland Minerals Limited's CEO Compensation With the industry

According to our data, Greenland Minerals Limited has a market capitalization of AU$119m, and paid its CEO total annual compensation worth AU$413k over the year to December 2020. We note that's an increase of 21% above last year. Notably, the salary which is AU$350.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below AU$257m, we found that the median total CEO compensation was AU$303k. This suggests that John Mair is paid more than the median for the industry. What's more, John Mair holds AU$744k worth of shares in the company in their own name.

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. Greenland Minerals pays out 85% 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.

A Look at Greenland Minerals Limited's Growth Numbers

Over the last three years, Greenland Minerals Limited has not seen its earnings per share change much, though there is a slight positive movement. Its revenue is up 146% over the last year.

It's hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn't shabby. We wouldn't say this is necessarily top notch growth, but it is certainly promising. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Greenland Minerals Limited Been A Good Investment?

Greenland Minerals Limited has not done too badly by shareholders, with a total return of 7.2%, over three years. It would be nice to see that metric improve in the future. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

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. In our study, we found 4 warning signs for Greenland Minerals you should be aware of, and 1 of them can't be ignored.

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

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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