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Is Endeavour Silver Corp’s (TSE:EDR) CEO Overpaid Relative To Its Peers?

Brad Cooke became the CEO of Endeavour Silver Corp (TSE:EDR) in 2005. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

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$351m, and pays its CEO total annual compensation worth US$1.2m. That’s actually a decrease on the year before. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO compensation was US$715k.

It would therefore appear that Endeavour Silver Corp pays Brad Cooke 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

The graphic below shows how CEO compensation at Endeavour Silver has changed from year to year.

TSX:EDR CEO Compensation November 23rd 18

Is Endeavour Silver Corp Growing?

On average over the last three years, Endeavour Silver Corp has grown earnings per share (EPS) by 107% each year. In the last year, its revenue is up 15%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has Endeavour Silver Corp Been A Good Investment?

I think that the total shareholder return of 41%, over three years, would leave most Endeavour Silver Corp shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.

In Summary…

We compared total CEO remuneration at Endeavour Silver Corp with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate.

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.