Oscar González Rocha became the CEO of Southern Copper Corporation (NYSE:SCCO) in 2004. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Oscar González Rocha’s Compensation Compare With Similar Sized Companies?
Our data indicates that Southern Copper Corporation is worth US$26b, and total annual CEO compensation is US$1.2m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$487k. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO compensation was US$11m. Once you start looking at very large companies, you need to take a broader range, because there simply aren’t that many of them.
A first glance this seems like a real positive for shareholders, since Oscar González Rocha is paid less than the average compensation paid by other large companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Southern Copper has changed over time.
Is Southern Copper Corporation Growing?
On average over the last three years, Southern Copper Corporation has grown earnings per share (EPS) by 11% each year. In the last year, its revenue is up 17%.
This demonstrates that the company has been improving recently. A good result. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Southern Copper Corporation Been A Good Investment?
I think that the total shareholder return of 36%, over three years, would leave most Southern Copper Corporation shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
It looks like Southern Copper Corporation pays its CEO less than the average at large companies. Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Oscar González Rocha deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. But it is even better if company insiders are also buying shares with their own money. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Southern Copper (free visualization of insider trades).
Or you might prefer examine intently this intuitive graph showing past 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 email@example.com.