Our Take On Monarch Gold Corporation's (TSE:MQR) CEO Salary
Jean-Marc Lacoste became the CEO of Monarch Gold Corporation (TSE:MQR) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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.
View our latest analysis for Monarch Gold
How Does Jean-Marc Lacoste's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Monarch Gold Corporation has a market cap of CA$58m, and reported total annual CEO compensation of CA$465k for the year to June 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$300k. We looked at a group of companies with market capitalizations under CA$260m, and the median CEO total compensation was CA$223k.
Thus we can conclude that Jean-Marc Lacoste receives more in total compensation than the median of a group of companies in the same market, and of similar size to Monarch Gold Corporation. However, this doesn't necessarily mean the pay 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.
You can see, below, how CEO compensation at Monarch Gold has changed over time.
Is Monarch Gold Corporation Growing?
Over the last three years Monarch Gold Corporation has grown its earnings per share (EPS) by an average of 30% per year (using a line of best fit). In the last year, its revenue is down 29%.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Monarch Gold Corporation Been A Good Investment?
With a three year total loss of 48%, Monarch Gold Corporation would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared total CEO remuneration at Monarch Gold 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.
However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Monarch Gold (free visualization of insider trades).
If you want to buy a stock that is better than Monarch Gold, this free list of high return, low debt companies is a great place to look.
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.
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.
