U.S. markets close in 1 hour
  • S&P 500

    -1.22 (-0.03%)
  • Dow 30

    +37.48 (+0.11%)
  • Nasdaq

    -70.86 (-0.55%)
  • Russell 2000

    +10.57 (+0.54%)
  • Crude Oil

    +2.38 (+2.59%)
  • Gold

    -10.30 (-0.57%)
  • Silver

    -0.50 (-2.42%)

    +0.0026 (+0.25%)
  • 10-Yr Bond

    +0.1070 (+3.84%)

    -0.0017 (-0.14%)

    +0.0890 (+0.07%)

    +568.41 (+2.41%)
  • CMC Crypto 200

    -3.13 (-0.55%)
  • FTSE 100

    -41.20 (-0.55%)
  • Nikkei 225

    -180.63 (-0.65%)

Why Wheaton Precious Metals Corp.'s (TSE:WPM) CEO Pay Matters To You

  • Oops!
    Something went wrong.
    Please try again later.
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Randy V. Smallwood has been the CEO of Wheaton Precious Metals Corp. (TSE:WPM) since 2011. First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Wheaton Precious Metals

How Does Randy V. Smallwood's Compensation Compare With Similar Sized Companies?

According to our data, Wheaton Precious Metals Corp. has a market capitalization of CA$17b, and paid its CEO total annual compensation worth US$4.4m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$749k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO total compensation to be US$7.0m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.

Most shareholders would consider it a positive that Randy V. Smallwood takes less in total compensation than the CEOs of most other large companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.

You can see, below, how CEO compensation at Wheaton Precious Metals has changed over time.

TSX:WPM CEO Compensation, December 24th 2019
TSX:WPM CEO Compensation, December 24th 2019

Is Wheaton Precious Metals Corp. Growing?

Over the last three years Wheaton Precious Metals Corp. has grown its earnings per share (EPS) by an average of 7.8% per year (using a line of best fit). In the last year, its revenue changed by just 0.6%.

I generally like to see a little revenue growth, but I'm happy with the EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. You might want to check this free visual report on analyst forecasts for future earnings.

Has Wheaton Precious Metals Corp. Been A Good Investment?

Boasting a total shareholder return of 66% over three years, Wheaton Precious Metals Corp. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

It looks like Wheaton Precious Metals Corp. pays its CEO less than the average at large companies.

Randy V. Smallwood is paid less than what is normal at large companies, and the total shareholder return has been pleasing over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. Shareholders may want to check for free if Wheaton Precious Metals insiders are buying or selling shares.

If you want to buy a stock that is better than Wheaton Precious Metals, 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.