In 2014 Rui Feng was appointed CEO of Silvercorp Metals Inc. (TSE:SVM). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Rui Feng's Compensation Compare With Similar Sized Companies?
According to our data, Silvercorp Metals Inc. has a market capitalization of CA$831m, and paid its CEO total annual compensation worth US$2.6m over the year to March 2019. We think total compensation is more important but we note that the CEO salary is lower, at US$974k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from CA$528m to CA$2.1b, we found the median CEO total compensation was CA$2.0m.
So Rui Feng 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 Silvercorp Metals has changed from year to year.
Is Silvercorp Metals Inc. Growing?
On average over the last three years, Silvercorp Metals Inc. has grown earnings per share (EPS) by 19% each year (using a line of best fit). Its revenue is down 2.6% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. Shareholders might be interested in this free visualization of analyst forecasts.
Has Silvercorp Metals Inc. Been A Good Investment?
I think that the total shareholder return of 38%, over three years, would leave most Silvercorp Metals Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
Rui Feng is paid around the same as most CEOs of similar size companies.
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Shareholders may want to check for free if Silvercorp Metals insiders are buying or selling shares.
If you want to buy a stock that is better than Silvercorp Metals, this free list of high return, low debt companies is a great place to look.
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