Pete Dougherty became the CEO of Argonaut Gold Inc. (TSE:AR) in 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
How Does Pete Dougherty's Compensation Compare With Similar Sized Companies?
Our data indicates that Argonaut Gold Inc. is worth CA$433m, and total annual CEO compensation is US$1.5m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$395k. We examined companies with market caps from US$200m to US$800m, and discovered that the median CEO total compensation of that group was US$1.1m.
Thus we can conclude that Pete Dougherty receives more in total compensation than the median of a group of companies in the same market, and of similar size to Argonaut Gold Inc.. However, this doesn't necessarily mean the pay is too high. 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 Argonaut Gold, below.
Is Argonaut Gold Inc. Growing?
Over the last three years Argonaut Gold Inc. has grown its earnings per share (EPS) by an average of 102% per year (using a line of best fit). It achieved revenue growth of 30% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.
Has Argonaut Gold Inc. Been A Good Investment?
With a three year total loss of 32%, Argonaut Gold Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at Argonaut Gold Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. 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. Whatever your view on compensation, you might want to check if insiders are buying or selling Argonaut Gold shares (free trial).
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.
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