U.S. Markets open in 7 hrs 43 mins

Is Premier Gold Mines Limited's (TSE:PG) CEO Overpaid Relative To Its Peers?

Simply Wall St

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

In 2006 Ewan Downie was appointed CEO of Premier Gold Mines Limited (TSE:PG). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.

Check out our latest analysis for Premier Gold Mines

How Does Ewan Downie's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Premier Gold Mines Limited has a market cap of CA$429m, and is paying total annual CEO compensation of US$1.8m. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$491k. We examined companies with market caps from CA$268m to CA$1.1b, and discovered that the median CEO total compensation of that group was CA$1.4m.

That means Ewan Downie receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Premier Gold Mines, below.

TSX:PG CEO Compensation, June 6th 2019

Is Premier Gold Mines Limited Growing?

Over the last three years Premier Gold Mines Limited has grown its earnings per share (EPS) by an average of 1.9% per year (using a line of best fit). In the last year, its revenue is down -44%.

I would prefer it if there was revenue growth, but I'm happy with the EPS growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. You might want to check this free visual report on analyst forecasts for future earnings.

Has Premier Gold Mines Limited Been A Good Investment?

With a three year total loss of 41%, Premier Gold Mines Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Ewan Downie is paid around the same as most CEOs of similar size companies.

The company cannot boast particularly strong per share growth. And it's hard to argue that the returns over the last three years have delighted. So it would take a bold person to suggest the pay is too modest. Whatever your view on compensation, you might want to check if insiders are buying or selling Premier Gold Mines shares (free trial).

Important note: Premier Gold Mines 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 editorial-team@simplywallst.com. 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.