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In 2015 Warren Rehn was appointed CEO of Golden Minerals Company (NYSEMKT:AUMN). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Warren Rehn’s Compensation Compare With Similar Sized Companies?
Our data indicates that Golden Minerals Company is worth US$32m, and total annual CEO compensation is US$566k. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$303k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$300k.
It would therefore appear that Golden Minerals Company pays Warren Rehn 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Golden Minerals has changed over time.
Is Golden Minerals Company Growing?
On average over the last three years, Golden Minerals Company has grown earnings per share (EPS) by 98% each year (using a line of best fit). In the last year, its revenue is up 1.7%.
This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has Golden Minerals Company Been A Good Investment?
With a total shareholder return of 13% over three years, Golden Minerals Company shareholders would, in general, be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared the total CEO remuneration paid by Golden Minerals Company, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also think investors are doing ok, over the same time period. While it may be worth researching further, we don’t see a problem with the CEO pay, given the good EPS growth. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Golden Minerals.
If you want to buy a stock that is better than Golden Minerals, this free list of high return, low debt companies is a great place to look.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.