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Mark Cruise has been the CEO of Trevali Mining Corporation (TSE:TV) since 2009. 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 – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Mark Cruise’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Trevali Mining Corporation has a market cap of CA$323m, and is paying total annual CEO compensation of US$2.7m. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$450k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$132m to CA$528m. The median total CEO compensation was CA$810k.
Thus we can conclude that Mark Cruise receives more in total compensation than the median of a group of companies in the same market, and of similar size to Trevali Mining 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 Trevali Mining, below.
Is Trevali Mining Corporation Growing?
On average over the last three years, Trevali Mining Corporation has grown earnings per share (EPS) by 106% each year (using a line of best fit). Its revenue is up 195% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.
Has Trevali Mining Corporation Been A Good Investment?
With a three year total loss of 19%, Trevali Mining Corporation would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We examined the amount Trevali Mining Corporation pays its CEO, and compared it to the amount paid by similar sized companies. 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. Having said that, shareholders may be disappointed with the weak returns over the last three years. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Trevali Mining.
Important note: Trevali Mining may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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.