U.S. Markets closed

Is Starcore International Mines Ltd.'s (TSE:SAM) CEO Paid At A Competitive Rate?

Simply Wall St

In 2010 Robert Eadie was appointed CEO of Starcore International Mines Ltd. (TSE:SAM). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Starcore International Mines

How Does Robert Eadie's Compensation Compare With Similar Sized Companies?

According to our data, Starcore International Mines Ltd. has a market capitalization of CA$4.0m, and paid its CEO total annual compensation worth CA$387k over the year to April 2019. That's below the compensation, last year. We think total compensation is more important but we note that the CEO salary is lower, at CA$360k. We took a group of companies with market capitalizations below CA$267m, and calculated the median CEO total compensation to be CA$160k.

It would therefore appear that Starcore International Mines Ltd. pays Robert Eadie more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at Starcore International Mines has changed over time.

TSX:SAM CEO Compensation, October 10th 2019

Is Starcore International Mines Ltd. Growing?

Starcore International Mines Ltd. has reduced its earnings per share by an average of 89% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 5.8% over the last year.

Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Starcore International Mines Ltd. Been A Good Investment?

With a three year total loss of 89%, Starcore International Mines Ltd. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared total CEO remuneration at Starcore International Mines Ltd. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

We think many shareholders would be underwhelmed with the business growth over the last three years. Over the same period, investors would have come away with nothing in the way of share price gains. Some might well form the view that the CEO is paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling Starcore International Mines shares (free trial).

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.