In 2008 Mike Basha was appointed CEO of Aurion Resources Ltd. (CVE:AU). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Mike Basha's Compensation Compare With Similar Sized Companies?
Our data indicates that Aurion Resources Ltd. is worth CA$142m, and total annual CEO compensation was reported as CA$200k for the year to December 2018. Notably, the salary of CA$200k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under CA$264m, and the median CEO total compensation was CA$180k.
That means Mike Basha receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Aurion Resources has changed over time.
Is Aurion Resources Ltd. Growing?
Aurion Resources Ltd. has reduced its earnings per share by an average of 10.0% a year, over the last three years (measured with a line of best fit). Its revenue is up 484% over last year.
The reduction in earnings per share, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Aurion Resources Ltd. Been A Good Investment?
I think that the total shareholder return of 328%, over three years, would leave most Aurion Resources Ltd. shareholders smiling. 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.
Mike Basha is paid around the same as most CEOs of similar size companies.
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So all things considered I'd venture that the CEO pay is appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Aurion Resources (free visualization of insider trades).
If you want to buy a stock that is better than Aurion Resources, this free list of high return, low debt companies is a great place to look.
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