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Does SSR Mining Inc.'s (TSE:SSRM) CEO Pay Reflect Performance?

Simply Wall St

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Paul Benson became the CEO of SSR Mining Inc. (TSE:SSRM) in 2015. 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. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for SSR Mining

How Does Paul Benson's Compensation Compare With Similar Sized Companies?

Our data indicates that SSR Mining Inc. is worth CA$2.1b, and total annual CEO compensation is US$2.1m. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$525k. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO total compensation was US$2.1m.

So Paul Benson receives a similar amount to the median CEO pay, amongst 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 SSR Mining, below.

TSX:SSRM CEO Compensation, July 5th 2019

Is SSR Mining Inc. Growing?

SSR Mining Inc. has increased its earnings per share (EPS) by an average of 64% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 4.7%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.

Has SSR Mining Inc. Been A Good Investment?

With a three year total loss of 7.0%, SSR Mining Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Paul Benson is paid around what is normal the leaders of comparable size companies.

We'd say the company can boast of its EPS growth, but it's disappointing to see negative shareholder returns over three years. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling SSR Mining (free visualization of insider trades).

If you want to buy a stock that is better than SSR 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.