Shareholders May Be More Conservative With EMX Royalty Corporation's (CVE:EMX) CEO Compensation For Now
Performance at EMX Royalty Corporation (CVE:EMX) has been reasonably good and CEO Dave Cole has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 30 June 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
See our latest analysis for EMX Royalty
How Does Total Compensation For Dave Cole Compare With Other Companies In The Industry?
According to our data, EMX Royalty Corporation has a market capitalization of CA$317m, and paid its CEO total annual compensation worth CA$1.0m over the year to December 2020. Notably, that's an increase of 31% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$436k.
On comparing similar companies from the same industry with market caps ranging from CA$123m to CA$492m, we found that the median CEO total compensation was CA$490k. Hence, we can conclude that Dave Cole is remunerated higher than the industry median. What's more, Dave Cole holds CA$8.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2020 | 2019 | Proportion (2020) |
Salary | CA$436k | CA$429k | 42% |
Other | CA$610k | CA$373k | 58% |
Total Compensation | CA$1.0m | CA$802k | 100% |
Speaking on an industry level, nearly 92% of total compensation represents salary, while the remainder of 8% is other remuneration. It's interesting to note that EMX Royalty allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at EMX Royalty Corporation's Growth Numbers
Over the last three years, EMX Royalty Corporation has shrunk its earnings per share by 35% per year. It achieved revenue growth of 75% over the last year.
The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has EMX Royalty Corporation Been A Good Investment?
Most shareholders would probably be pleased with EMX Royalty Corporation for providing a total return of 171% over three years. 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.
In Summary...
The overall company performance has been commendable, however there are still areas for improvement. Until EPS growth picks back up, we think shareholders may find it hard to justify increasing CEO pay given that they are already paid above industry average.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for EMX Royalty that investors should look into moving forward.
Switching gears from EMX Royalty, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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