Clive Johnson became the CEO of B2Gold Corp. (TSE:BTO) in 2007, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Comparing B2Gold Corp.'s CEO Compensation With the industry
Our data indicates that B2Gold Corp. has a market capitalization of CA$8.6b, and total annual CEO compensation was reported as CA$5.7m for the year to December 2019. That's a fairly small increase of 4.0% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$925k.
In comparison with other companies in the industry with market capitalizations ranging from CA$5.3b to CA$16b, the reported median CEO total compensation was CA$6.3m. So it looks like B2Gold compensates Clive Johnson in line with the median for the industry. Moreover, Clive Johnson also holds CA$33m worth of B2Gold stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On an industry level, roughly 85% of total compensation represents salary and 15% is other remuneration. B2Gold sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
B2Gold Corp.'s Growth
B2Gold Corp. has seen its earnings per share (EPS) increase by 89% a year over the past three years. Its revenue is up 39% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has B2Gold Corp. Been A Good Investment?
We think that the total shareholder return of 169%, over three years, would leave most B2Gold Corp. 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.
As we noted earlier, B2Gold pays its CEO in line with similar-sized companies belonging to the same industry. The company is growing EPS and total shareholder returns have been pleasing. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. In fact, shareholders might even think the CEO deserves a raise as a reward due to the fantastic returns generated.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for B2Gold that investors should think about before committing capital to this stock.
Switching gears from B2Gold, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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