This article will reflect on the compensation paid to Mick Clifford who has served as CEO of Zenith Minerals Limited (ASX:ZNC) since 2014. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Zenith Minerals.

See our latest analysis for Zenith Minerals

How Does Total Compensation For Mick Clifford Compare With Other Companies In The Industry?

Our data indicates that Zenith Minerals Limited has a market capitalization of AU$44m, and total annual CEO compensation was reported as AU$265k for the year to June 2020. We note that's a decrease of 10% compared to last year. Notably, the salary which is AU$211.7k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under AU$275m, the reported median total CEO compensation was AU$311k. So it looks like Zenith Minerals compensates Mick Clifford in line with the median for the industry. What's more, Mick Clifford holds AU$91k worth of shares in the company in their own name.

On an industry level, around 70% of total compensation represents salary and 30% is other remuneration. It's interesting to note that Zenith Minerals pays out a greater portion of remuneration through salary, compared to the 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.

A Look at Zenith Minerals Limited's Growth Numbers

Over the past three years, Zenith Minerals Limited has seen its earnings per share (EPS) grow by 26% per year. It achieved revenue growth of 27% 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. 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 Zenith Minerals Limited Been A Good Investment?

With a total shareholder return of 15% over three years, Zenith Minerals Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude…

As previously discussed, Mick is compensated close to the median for companies of its size, and which belong to the same industry. But EPS growth for the company has been strong over the last three years, though shareholder returns in comparison haven't been as impressive. So considering these factors, we think the compensation is probably quite reasonable, but investor returns need a boost moving forward.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for Zenith Minerals (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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