David Wolfin became the CEO of Avino Silver & Gold Mines Ltd. (TSE:ASM) in 2010. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does David Wolfin's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Avino Silver & Gold Mines Ltd. has a market cap of CA$50m, and reported total annual CEO compensation of US$459k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$232k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$136k.
It would therefore appear that Avino Silver & Gold Mines Ltd. pays David Wolfin more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Avino Silver & Gold Mines, below.
Is Avino Silver & Gold Mines Ltd. Growing?
On average over the last three years, Avino Silver & Gold Mines Ltd. has shrunk earnings per share by 53% each year (measured with a line of best fit). Its revenue is down 15% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Avino Silver & Gold Mines Ltd. Been A Good Investment?
With a three year total loss of 74%, Avino Silver & Gold Mines Ltd. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Avino Silver & Gold Mines Ltd. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. Over the same period, investors would have come away with nothing in the way of share price gains. This analysis suggests to us that the CEO is paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Avino Silver & Gold Mines (free visualization of insider trades).
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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