Key Insights

Pacific Nickel Mines to hold its Annual General Meeting on 29th of November CEO Geoff Hiller's total compensation includes salary of AU$348.0k Total compensation is similar to the industry average Pacific Nickel Mines' EPS grew by 133% over the past three years  while total shareholder return over the past three years was 78%

We have been pretty impressed with the performance at Pacific Nickel Mines Limited (ASX:PNM) recently and CEO Geoff Hiller deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 29th of November. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Pacific Nickel Mines

Comparing Pacific Nickel Mines Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Pacific Nickel Mines Limited has a market capitalization of AU$41m, and reported total annual CEO compensation of AU$373k for the year to June 2023. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at AU$348.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Australian Metals and Mining industry with market capitalizations under AU$305m, the reported median total CEO compensation was AU$386k. This suggests that Pacific Nickel Mines remunerates its CEO largely in line with the industry average. Moreover, Geoff Hiller also holds AU$1.1m worth of Pacific Nickel Mines stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component 2023 2022 Proportion (2023) Salary AU$348k AU$337k 93% Other AU$25k AU$27k 7% Total Compensation AU$373k AU$364k 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. It's interesting to note that Pacific Nickel Mines pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

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A Look at Pacific Nickel Mines Limited's Growth Numbers

Pacific Nickel Mines Limited's earnings per share (EPS) grew 133% per year over the last three years. Its revenue is up 93% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Pacific Nickel Mines Limited Been A Good Investment?

We think that the total shareholder return of 78%, over three years, would leave most Pacific Nickel Mines Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Some shareholders will probably be more lenient on CEO compensation in the upcoming AGM given the pleasing performance of the company recently. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for Pacific Nickel Mines you should be aware of, and 2 of them are significant.

Important note: Pacific Nickel Mines 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.

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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.