Tim Gitzel became the CEO of Cameco Corporation (TSE:CCO) in 2011. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Tim Gitzel's Compensation Compare With Similar Sized Companies?
According to our data, Cameco Corporation has a market capitalization of CA$4.8b, and paid its CEO total annual compensation worth CA$6.8m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$1.0m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from CA$2.6b to CA$8.5b, we found the median CEO total compensation was CA$3.8m.
Thus we can conclude that Tim Gitzel receives more in total compensation than the median of a group of companies in the same market, and of similar size to Cameco Corporation. However, this doesn't necessarily mean the pay 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 Cameco, below.
Is Cameco Corporation Growing?
Over the last three years Cameco Corporation has grown its earnings per share (EPS) by an average of 55% per year (using a line of best fit). It saw its revenue drop 12% over the last year.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.
Has Cameco Corporation Been A Good Investment?
Since shareholders would have lost about 2.2% over three years, some Cameco Corporation shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared total CEO remuneration at Cameco Corporation with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. 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. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Cameco.
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.
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