Rick Howes became the CEO of Dundee Precious Metals Inc. (TSE:DPM) in 2013. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
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How Does Rick Howes's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Dundee Precious Metals Inc. has a market cap of CA$721m, and is paying total annual CEO compensation of US$2.9m. (This is based on the year to December 2018). That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at US$674k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$269m to CA$1.1b. The median total CEO compensation was CA$1.4m.
Thus we can conclude that Rick Howes receives more in total compensation than the median of a group of companies in the same market, and of similar size to Dundee Precious Metals Inc.. 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 Dundee Precious Metals has changed over time.
Is Dundee Precious Metals Inc. Growing?
Dundee Precious Metals Inc. has increased its earnings per share (EPS) by an average of 67% a year, over the last three years (using a line of best fit). It achieved revenue growth of 4.0% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has Dundee Precious Metals Inc. Been A Good Investment?
Most shareholders would probably be pleased with Dundee Precious Metals Inc. for providing a total return of 37% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We compared the total CEO remuneration paid by Dundee Precious Metals Inc., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Shareholders may want to check for free if Dundee Precious Metals insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.