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In 2005 Don Lindsay was appointed CEO of Teck Resources Limited (TSE:TECK.B). First, this article will compare CEO compensation with compensation at other large companies. 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.
How Does Don Lindsay's Compensation Compare With Similar Sized Companies?
Our data indicates that Teck Resources Limited is worth CA$17b, and total annual CEO compensation is CA$11m. (This figure is for the year to December 2018). That's just a smallish increase of 0.5% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$1.6m. We looked at a group of companies with market capitalizations over CA$11b and the median CEO total compensation was CA$8.8m. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
So Don Lindsay is paid around the average of 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 Teck Resources, below.
Is Teck Resources Limited Growing?
Teck Resources Limited has increased its earnings per share (EPS) by an average of 80% a year, over the last three years (using a line of best fit). It achieved revenue growth of 3.5% over the last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.
Has Teck Resources Limited Been A Good Investment?
Boasting a total shareholder return of 125% over three years, Teck Resources Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Remuneration for Don Lindsay is close enough to the median pay for a CEO of a large company .
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if Teck Resources insiders are buying or selling shares.
If you want to buy a stock that is better than Teck Resources, 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 email@example.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.