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In 2004 Oscar González Rocha was appointed CEO of Southern Copper Corporation (NYSE:SCCO). This analysis aims first to contrast CEO compensation with other large companies. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Oscar González Rocha's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Southern Copper Corporation has a market cap of US$29b, and is paying total annual CEO compensation of US$1.5m. (This number is for the twelve months until December 2018). That's a notable increase of 22% on last year. We think total compensation is more important but we note that the CEO salary is lower, at US$490k. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts - even though some are quite a bit bigger than others).
A first glance this seems like a real positive for shareholders, since Oscar González Rocha is paid less than the average total compensation paid by other large companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Southern Copper has changed from year to year.
Is Southern Copper Corporation Growing?
Over the last three years Southern Copper Corporation has grown its earnings per share (EPS) by an average of 27% per year (using a line of best fit). It achieved revenue growth of 1.4% over the last year.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. It could be important to check this free visual depiction of what analysts expect for the future.
Has Southern Copper Corporation Been A Good Investment?
Boasting a total shareholder return of 52% over three years, Southern Copper Corporation has done well by shareholders. 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.
It looks like Southern Copper Corporation pays its CEO less than the average at large companies. Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Oscar González Rocha deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. Shareholders may want to check for free if Southern Copper insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.