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Is First Quantum Minerals Ltd.'s (TSE:FM) CEO Pay Fair?

Simply Wall St

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Philip Kelvin Pascall has been the CEO of First Quantum Minerals Ltd. (TSE:FM) since 1996. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.

View our latest analysis for First Quantum Minerals

How Does Philip Kelvin Pascall's Compensation Compare With Similar Sized Companies?

Our data indicates that First Quantum Minerals Ltd. is worth CA$8.5b, and total annual CEO compensation is US$4.6m. (This figure is for the year to December 2018). That's a notable increase of 19% on last year. While we always look at total compensation first, we note that the salary component is less, at US$1.2m. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$4.6m.

That means Philip Kelvin Pascall receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at First Quantum Minerals has changed over time.

TSX:FM CEO Compensation, June 25th 2019

Is First Quantum Minerals Ltd. Growing?

Over the last three years First Quantum Minerals Ltd. has grown its earnings per share (EPS) by an average of 57% per year (using a line of best fit). Its revenue is up 15% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. It could be important to check this free visual depiction of what analysts expect for the future.

Has First Quantum Minerals Ltd. Been A Good Investment?

Most shareholders would probably be pleased with First Quantum Minerals Ltd. for providing a total return of 50% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Remuneration for Philip Kelvin Pascall is close enough to the median pay for a CEO of a similar sized company .

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying First Quantum Minerals shares with their own money (free access).

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.