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Duncan Middlemiss became the CEO of Wesdome Gold Mines Ltd. (TSE:WDO) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Duncan Middlemiss's Compensation Compare With Similar Sized Companies?
Our data indicates that Wesdome Gold Mines Ltd. is worth CA$751m, and total annual CEO compensation is CA$1.5m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$428k. When we examined a selection of companies with market caps ranging from CA$262m to CA$1.0b, we found the median CEO total compensation was CA$1.4m.
So Duncan Middlemiss receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Wesdome Gold Mines has changed over time.
Is Wesdome Gold Mines Ltd. Growing?
On average over the last three years, Wesdome Gold Mines Ltd. has grown earnings per share (EPS) by 64% each year (using a line of best fit). Its revenue is up 20% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Wesdome Gold Mines Ltd. Been A Good Investment?
Boasting a total shareholder return of 158% over three years, Wesdome Gold Mines Ltd. has done well by shareholders. 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.
Duncan Middlemiss 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. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Wesdome Gold Mines (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 email@example.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.