We Discuss Why Regis Resources Limited's (ASX:RRL) CEO Compensation May Be Closely Reviewed

In This Article:

Key Insights

  • Regis Resources' Annual General Meeting to take place on 23rd of November

  • Salary of AU$828.9k is part of CEO Jim Beyer's total remuneration

  • The total compensation is similar to the average for the industry

  • Regis Resources' three-year loss to shareholders was 49% while its EPS was down 100% over the past three years

Regis Resources Limited (ASX:RRL) has not performed well recently and CEO Jim Beyer will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 23rd of November. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for Regis Resources

How Does Total Compensation For Jim Beyer Compare With Other Companies In The Industry?

According to our data, Regis Resources Limited has a market capitalization of AU$1.4b, and paid its CEO total annual compensation worth AU$1.8m over the year to June 2023. That's a notable increase of 9.6% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at AU$829k.

For comparison, other companies in the Australian Metals and Mining industry with market capitalizations ranging between AU$613m and AU$2.5b had a median total CEO compensation of AU$1.5m. This suggests that Regis Resources remunerates its CEO largely in line with the industry average. What's more, Jim Beyer holds AU$867k worth of shares in the company in their own name.

Component

2023

2022

Proportion (2023)

Salary

AU$829k

AU$780k

45%

Other

AU$1.0m

AU$890k

55%

Total Compensation

AU$1.8m

AU$1.7m

100%

Talking in terms of the industry, salary represented approximately 61% of total compensation out of all the companies we analyzed, while other remuneration made up 39% of the pie. Regis Resources pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
ceo-compensation

Regis Resources Limited's Growth

Regis Resources Limited has reduced its earnings per share by 100% a year over the last three years. In the last year, its revenue is up 12%.

Few shareholders would be pleased to read that EPS have declined. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that EPS has gone backwards over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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.