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In 2012 Fernando Ganoza was appointed CEO of Atico Mining Corporation (CVE:ATY). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Fernando Ganoza's Compensation Compare With Similar Sized Companies?
According to our data, Atico Mining Corporation has a market capitalization of CA$30m, and paid its CEO total annual compensation worth US$690k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$340k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$157k.
Thus we can conclude that Fernando Ganoza receives more in total compensation than the median of a group of companies in the same market, and of similar size to Atico Mining Corporation. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Atico Mining has changed from year to year.
Is Atico Mining Corporation Growing?
Over the last three years Atico Mining Corporation has grown its earnings per share (EPS) by an average of 38% per year (using a line of best fit). Its revenue is down 12% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.
Has Atico Mining Corporation Been A Good Investment?
With a three year total loss of 66%, Atico Mining Corporation would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at Atico Mining Corporation 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. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Atico Mining (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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. Thank you for reading.