Does Endeavour Mining Corporation’s (TSE:EDV) CEO Pay Reflect Performance?
Want to participate in a short research study? Help shape the future of investing tools and receive a $20 prize!
In 2016 Sébastien de Montessus was appointed CEO of Endeavour Mining Corporation (TSE:EDV). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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.
Check out our latest analysis for Endeavour Mining
How Does Sébastien de Montessus’s Compensation Compare With Similar Sized Companies?
According to our data, Endeavour Mining Corporation has a market capitalization of CA$2.4b, and pays its CEO total annual compensation worth US$6.3m. (This figure is for the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at US$950k. When we examined a selection of companies with market caps ranging from US$1.0b to US$3.2b, we found the median CEO compensation was US$2.1m.
Thus we can conclude that Sébastien de Montessus receives more in total compensation than the median of a group of companies in the same market, and of similar size to Endeavour Mining Corporation. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Endeavour Mining has changed from year to year.
Is Endeavour Mining Corporation Growing?
On average over the last three years, Endeavour Mining Corporation has grown earnings per share (EPS) by 52% each year (using a line of best fit). It achieved revenue growth of 90% 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. It could be important to check this free visual depiction of what analysts expect for the future.
Has Endeavour Mining Corporation Been A Good Investment?
Most shareholders would probably be pleased with Endeavour Mining Corporation for providing a total return of 89% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We compared the total CEO remuneration paid by Endeavour Mining Corporation, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, 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 Endeavour Mining (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.
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.
