Christian Milau has been the CEO of Equinox Gold Corp. (TSE:EQX) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Equinox Gold.
How Does Total Compensation For Christian Milau Compare With Other Companies In The Industry?
At the time of writing, our data shows that Equinox Gold Corp. has a market capitalization of CA$3.7b, and reported total annual CEO compensation of US$737k for the year to December 2019. Notably, that's a decrease of 9.3% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$366k.
On comparing similar companies from the same industry with market caps ranging from CA$2.7b to CA$8.5b, we found that the median CEO total compensation was US$3.6m. This suggests that Christian Milau is paid below the industry median. What's more, Christian Milau holds CA$4.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Speaking on an industry level, nearly 83% of total compensation represents salary, while the remainder of 17% is other remuneration. In Equinox Gold's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Equinox Gold Corp.'s Growth Numbers
Over the last three years, Equinox Gold Corp. has shrunk its earnings per share by 45% per year. Its revenue is up 446% over the last year.
Investors would be a bit wary of companies that have lower earnings On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Equinox Gold Corp. Been A Good Investment?
Most shareholders would probably be pleased with Equinox Gold Corp. for providing a total return of 208% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
As previously discussed, Christian is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. While at the same time, shareholder returns have been rock solid in the past three years and revenues have been growing as well. On the flip side, earnings growth during the same period is negative. However, considering all aspects of performance, we've concluded Christian earns an appropriate compensation.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for Equinox Gold (1 is a bit concerning!) that you should be aware of before investing here.
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.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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