Is Sandstorm Gold Ltd.'s (TSE:SSL) CEO Being Overpaid?
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In 2008 Nolan Watson was appointed CEO of Sandstorm Gold Ltd. (TSE:SSL). First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Sandstorm Gold
How Does Nolan Watson's Compensation Compare With Similar Sized Companies?
Our data indicates that Sandstorm Gold Ltd. is worth CA$1.3b, and total annual CEO compensation is US$1.7m. (This number is for the twelve months until December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$303k. We examined companies with market caps from US$400m to US$1.6b, and discovered that the median CEO total compensation of that group was US$1.4m.
So Nolan Watson is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Sandstorm Gold has changed from year to year.
Is Sandstorm Gold Ltd. Growing?
On average over the last three years, Sandstorm Gold Ltd. has grown earnings per share (EPS) by 86% each year (using a line of best fit). Its revenue is up 7.1% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Shareholders might be interested in this free visualization of analyst forecasts.
Has Sandstorm Gold Ltd. Been A Good Investment?
Boasting a total shareholder return of 66% over three years, Sandstorm Gold Ltd. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Remuneration for Nolan Watson is close enough to the median pay for a CEO of a similar sized company .
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Sandstorm Gold (free visualization of insider trades).
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.
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.
