In 2014 Rui Feng was appointed CEO of Silvercorp Metals Inc. (TSE:SVM). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Rui Feng’s Compensation Compare With Similar Sized Companies?
According to our data, Silvercorp Metals Inc. has a market capitalization of CA$567m, and pays its CEO total annual compensation worth US$2.6m. (This figure is for the year to March 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$910k. We examined companies with market caps from CA$269m to CA$1.1b, and discovered that the median CEO compensation of that group was CA$1.3m.
It would therefore appear that Silvercorp Metals Inc. pays Rui Feng more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Silvercorp Metals, below.
Is Silvercorp Metals Inc. Growing?
Silvercorp Metals Inc. has increased its earnings per share (EPS) by an average of 72% a year, over the last three years (using a line of best fit). Its revenue is up 5.0% over last year.
This demonstrates that the company has been improving recently. A good result. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has Silvercorp Metals Inc. Been A Good Investment?
I think that the total shareholder return of 171%, over three years, would leave most Silvercorp Metals Inc. 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.
We compared the total CEO remuneration paid by Silvercorp Metals Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. 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. Whatever your view on compensation, you might want to check if insiders are buying or selling Silvercorp Metals shares (free trial).
If you want to buy a stock that is better than Silvercorp Metals, this free list of high return, low debt companies is a great place to look.
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