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Is Endeavour Silver Corp.'s (TSE:EDR) CEO Paid Enough Relative To Peers?

Simply Wall St

Brad Cooke has been the CEO of Endeavour Silver Corp. (TSE:EDR) since 2005. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.

Check out our latest analysis for Endeavour Silver

How Does Brad Cooke's Compensation Compare With Similar Sized Companies?

According to our data, Endeavour Silver Corp. has a market capitalization of CA$444m, and paid its CEO total annual compensation worth US$1.2m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$367k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from US$200m to US$800m, we found the median CEO total compensation was US$1.0m.

So Brad Cooke receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Endeavour Silver, below.

TSX:EDR CEO Compensation, October 7th 2019

Is Endeavour Silver Corp. Growing?

On average over the last three years, Endeavour Silver Corp. has grown earnings per share (EPS) by 88% each year (using a line of best fit). Its revenue is down 19% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Endeavour Silver Corp. Been A Good Investment?

Given the total loss of 42% over three years, many shareholders in Endeavour Silver Corp. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Remuneration for Brad Cooke is close enough to the median pay for a CEO of a similar sized company .

We like that the company is growing EPS, but it's disappointing to see negative shareholder returns over three years. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. Shareholders may want to check for free if Endeavour Silver insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.