Is Anaconda Mining Inc.'s (TSE:ANX) CEO Pay Fair?
In 2010 Dustin Angelo was appointed CEO of Anaconda Mining Inc. (TSE:ANX). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
See our latest analysis for Anaconda Mining
How Does Dustin Angelo's Compensation Compare With Similar Sized Companies?
According to our data, Anaconda Mining Inc. has a market capitalization of CA$42m, and pays its CEO total annual compensation worth CA$360k. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$173k. We took a group of companies with market capitalizations below CA$268m, and calculated the median CEO total compensation to be CA$142k.
As you can see, Dustin Angelo is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Anaconda Mining Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Anaconda Mining, below.
Is Anaconda Mining Inc. Growing?
Anaconda Mining Inc. has increased its earnings per share (EPS) by an average of 7.4% a year, over the last three years (using a line of best fit). Its revenue is up 14% over last year.
I would argue that the modest growth in revenue is a notable positive. And the improvement in earnings per share is modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has Anaconda Mining Inc. Been A Good Investment?
I think that the total shareholder return of 35%, over three years, would leave most Anaconda Mining Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We compared the total CEO remuneration paid by Anaconda Mining Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
While we generally prefer to see stronger EPS growth, there's no arguing with the strong returns to shareholders, over the last three years. Considering this fine result for investors, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Anaconda Mining (free visualization of insider trades).
If you want to buy a stock that is better than Anaconda Mining, 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.
