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Is Guyana Goldfields Inc. (TSE:GUY) Excessively Paying Its CEO?

Simply Wall St

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Scott Caldwell became the CEO of Guyana Goldfields Inc. (TSE:GUY) in 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Guyana Goldfields

How Does Scott Caldwell's Compensation Compare With Similar Sized Companies?

Our data indicates that Guyana Goldfields Inc. is worth CA$201m, and total annual CEO compensation is US$658k. (This is based on the year to December 2018). That's actually a decrease on the year before. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$638k. We took a group of companies with market capitalizations below CA$268m, and calculated the median CEO total compensation to be CA$145k.

It would therefore appear that Guyana Goldfields Inc. pays Scott Caldwell 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 Guyana Goldfields has changed from year to year.

TSX:GUY CEO Compensation, May 6th 2019

Is Guyana Goldfields Inc. Growing?

On average over the last three years, Guyana Goldfields Inc. has shrunk earnings per share by 46% each year (measured with a line of best fit). In the last year, its revenue is down -6.7%.

Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.

Has Guyana Goldfields Inc. Been A Good Investment?

Given the total loss of 85% over three years, many shareholders in Guyana Goldfields Inc. 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...

We examined the amount Guyana Goldfields Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

Over the same period, investors would have come away with nothing in the way of share price gains. In our opinion the CEO might be paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling Guyana Goldfields shares (free trial).

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.