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Is Altius Minerals Corporation's (TSE:ALS) CEO Being Overpaid?

Simply Wall St

Brian Dalton has been the CEO of Altius Minerals Corporation (TSE:ALS) since 1997. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Altius Minerals

How Does Brian Dalton's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Altius Minerals Corporation has a market cap of CA$557m, and is paying total annual CEO compensation of CA$1.4m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$450k. We looked at a group of companies with market capitalizations from CA$263m to CA$1.1b, and the median CEO total compensation was CA$1.4m.

So Brian Dalton is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Altius Minerals, below.

TSX:ALS CEO Compensation, July 30th 2019

Is Altius Minerals Corporation Growing?

Altius Minerals Corporation has increased its earnings per share (EPS) by an average of 51% a year, over the last three years (using a line of best fit). Its revenue is up 23% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Shareholders might be interested in this free visualization of analyst forecasts.

Has Altius Minerals Corporation Been A Good Investment?

With a total shareholder return of 27% over three years, Altius Minerals Corporation shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Brian Dalton is paid around the same as most CEOs of similar size companies.

Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So considering these factors, we think the CEO pay is probably quite reasonable. Shareholders may want to check for free if Altius Minerals insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.