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It would be hard to discount the role that CEO Sean Boyd has played in delivering the impressive results at Agnico Eagle Mines Limited (NYSE:AEM) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 30 April 2021. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and 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.
How Does Total Compensation For Sean Boyd Compare With Other Companies In The Industry?
According to our data, Agnico Eagle Mines Limited has a market capitalization of US$16b, and paid its CEO total annual compensation worth US$11m over the year to December 2020. Notably, that's an increase of 14% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.4m.
For comparison, other companies in the industry with market capitalizations above US$8.0b, reported a median total CEO compensation of US$12m. So it looks like Agnico Eagle Mines compensates Sean Boyd in line with the median for the industry. What's more, Sean Boyd holds US$8.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
On an industry level, around 35% of total compensation represents salary and 65% is other remuneration. In Agnico Eagle Mines' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Agnico Eagle Mines Limited's Growth Numbers
Agnico Eagle Mines Limited has seen its earnings per share (EPS) increase by 27% a year over the past three years. Its revenue is up 26% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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.
Has Agnico Eagle Mines Limited Been A Good Investment?
Most shareholders would probably be pleased with Agnico Eagle Mines Limited for providing a total return of 57% over three years. 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.
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for Agnico Eagle Mines (1 is a bit concerning!) that you should be aware of before investing here.
Switching gears from Agnico Eagle Mines, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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