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Should You Worry About Excellon Resources Inc.'s (TSE:EXN) CEO Pay?

Simply Wall St

Brendan Cahill became the CEO of Excellon Resources Inc. (TSE:EXN) in 2013. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Excellon Resources

How Does Brendan Cahill's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Excellon Resources Inc. has a market cap of CA$101m, and reported total annual CEO compensation of US$361k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$200k. We looked at a group of companies with market capitalizations under CA$264m, and the median CEO total compensation was CA$225k.

As you can see, Brendan Cahill is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Excellon Resources Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Excellon Resources, below.

TSX:EXN CEO Compensation, December 16th 2019

Is Excellon Resources Inc. Growing?

Over the last three years Excellon Resources Inc. has grown its earnings per share (EPS) by an average of 30% per year (using a line of best fit). In the last year, its revenue is up 1.1%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.

Has Excellon Resources Inc. Been A Good Investment?

With a three year total loss of 46%, Excellon Resources Inc. 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 the total CEO remuneration paid by Excellon Resources Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. 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 Excellon Resources.

If you want to buy a stock that is better than Excellon Resources, 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.