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Why Santacruz Silver Mining Ltd.'s (CVE:SCZ) CEO Pay Matters To You

Simply Wall St

Arturo Préstamo Elizondo has been the CEO of Santacruz Silver Mining Ltd. (CVE:SCZ) since 2012. 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 method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Santacruz Silver Mining

How Does Arturo Préstamo Elizondo's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Santacruz Silver Mining Ltd. has a market cap of CA$26m, and reported total annual CEO compensation of US$203k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$203k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$155k.

Thus we can conclude that Arturo Préstamo Elizondo receives more in total compensation than the median of a group of companies in the same market, and of similar size to Santacruz Silver Mining Ltd.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at Santacruz Silver Mining, below.

TSXV:SCZ CEO Compensation, February 18th 2020

Is Santacruz Silver Mining Ltd. Growing?

Over the last three years Santacruz Silver Mining Ltd. has grown its earnings per share (EPS) by an average of 53% per year (using a line of best fit). It achieved revenue growth of 43% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Santacruz Silver Mining Ltd. Been A Good Investment?

Given the total loss of 58% over three years, many shareholders in Santacruz Silver Mining Ltd. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared total CEO remuneration at Santacruz Silver Mining 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.

However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Santacruz Silver Mining.

If you want to buy a stock that is better than Santacruz Silver Mining, this free list of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.