Luke Tonkin has been the CEO of Silver Lake Sources Restricted (ASX:SLR) since 2014, and this text will look at the manager’s compensation with respect to the general efficiency of the corporate. This evaluation can even look to evaluate whether or not the CEO is appropriately paid, contemplating current earnings development and investor returns for Silver Lake Sources.
Check out our latest analysis for Silver Lake Resources
Evaluating Silver Lake Sources Restricted’s CEO Compensation With the business
Our information signifies that Silver Lake Sources Restricted has a market capitalization of AU$1.5b, and whole annual CEO compensation was reported as AU$1.7m for the yr to June 2020. Notably, that is a rise of 18% over the yr earlier than. We predict whole compensation is extra necessary however our information exhibits that the CEO wage is decrease, at AU$753k.
As compared with different corporations within the business with market capitalizations starting from AU$521m to AU$2.1b, the reported median CEO whole compensation was AU$1.1m. This implies that Luke Tonkin is paid greater than the median for the business. Furthermore, Luke Tonkin additionally holds AU$898k value of Silver Lake Sources inventory immediately underneath their very own identify.
| Part | 2020 | 2019 | Proportion (2020) |
| Wage | AU$753k | AU$683k | 45% |
| Different | AU$919k | AU$728k | 55% |
| Complete Compensation | AU$1.7m | AU$1.4m | 100% |
Talking on an business stage, almost 69% of whole compensation represents wage, whereas the rest of 31% is different remuneration. Silver Lake Sources pays a modest slice of remuneration by way of wage, as in comparison with the broader business. It is necessary to notice {that a} slant in the direction of non-salary compensation means that whole pay is tied to the corporate’s efficiency.
A Have a look at Silver Lake Sources Restricted’s Progress Numbers
Silver Lake Sources Restricted has seen its earnings per share (EPS) enhance by 326% a yr over the previous three years. It achieved income development of 86% over the past yr.
This demonstrates that the corporate has been enhancing not too long ago and is nice information for the shareholders. The mix of robust income development with medium-term EPS enchancment actually factors to the sort of development we wish to see. Wanting forward, you would possibly wish to test this free visual report on analyst forecasts for the company’s future earnings..
Has Silver Lake Sources Restricted Been A Good Funding?
Most shareholders would in all probability be happy with Silver Lake Sources Restricted for offering a complete return of 330% over three years. So that they will not be in any respect involved if the CEO had been to be paid greater than is regular for corporations across the similar measurement.
To Conclude…
As beforehand mentioned, Luke is compensated greater than what’s regular for CEOs of corporations of comparable measurement, and which belong to the identical business. Nevertheless, Silver Lake Sources has produced robust EPS development and shareholder returns over the past three years. Because of the wonderful all-round efficiency of the corporate, we imagine CEO compensation is truthful. Given the robust historical past of shareholder returns, the shareholders are in all probability very proud of Luke’s efficiency.
It’s at all times advisable to analyse CEO pay, together with performing an intensive evaluation of the corporate’s key efficiency areas. That is why we did our analysis, and recognized 3 warning signs for Silver Lake Resources (of which 2 are vital!) that you must learn about with a view to have a holistic understanding of the inventory.
Vital notice: Silver Lake Sources is an thrilling inventory, however we perceive buyers could also be on the lookout for an unencumbered stability sheet and blockbuster returns. You would possibly discover one thing higher in this list of interesting companies with high ROE and low debt.
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