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Is Abcourt Mines Inc.'s (CVE:ABI) CEO Pay Fair?

Simply Wall St

Renaud Hinse is the CEO of Abcourt Mines Inc. (CVE:ABI). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Abcourt Mines

How Does Renaud Hinse's Compensation Compare With Similar Sized Companies?

According to our data, Abcourt Mines Inc. has a market capitalization of CA$27m, and pays its CEO total annual compensation worth CA$375k. (This number is for the twelve months until June 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth CA$375k. We looked at a group of companies with market capitalizations under CA$263m, and the median CEO total compensation was CA$144k.

Thus we can conclude that Renaud Hinse receives more in total compensation than the median of a group of companies in the same market, and of similar size to Abcourt Mines Inc.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at Abcourt Mines has changed over time.

TSXV:ABI CEO Compensation, September 9th 2019

Is Abcourt Mines Inc. Growing?

Abcourt Mines Inc. has increased its earnings per share (EPS) by an average of 64% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 9.7%.

This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Abcourt Mines Inc. Been A Good Investment?

Since shareholders would have lost about 10.0% over three years, some Abcourt Mines Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We examined the amount Abcourt Mines Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Abcourt Mines.

If you want to buy a stock that is better than Abcourt Mines, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.