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Should You Worry About SEMAFO Inc.'s (TSE:SMF) CEO Pay Cheque?

Simply Wall St

In 2012 Benoit Desormeaux was appointed CEO of SEMAFO Inc. (TSE:SMF). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for SEMAFO

How Does Benoit Desormeaux's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that SEMAFO Inc. has a market cap of CA$1.6b, and is paying total annual CEO compensation of US$2.1m. (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 US$509k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$1.3b to CA$4.3b. The median total CEO compensation was CA$2.8m.

So Benoit Desormeaux is paid around the average of 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 SEMAFO has changed over time.

TSX:SMF CEO Compensation, August 19th 2019

Is SEMAFO Inc. Growing?

Over the last three years SEMAFO Inc. has shrunk its earnings per share by an average of 43% per year (measured with a line of best fit). It achieved revenue growth of 77% over the last year.

As investors, we are a bit wary of companies that have lower earnings per share, over three years. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. It could be important to check this free visual depiction of what analysts expect for the future.

Has SEMAFO Inc. Been A Good Investment?

Given the total loss of 27% over three years, many shareholders in SEMAFO Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Benoit Desormeaux is paid around what is normal the leaders of comparable size companies.

The per share growth could be better, in our view. And shareholder returns have been disappointing over the last three years. So many would argue that the CEO is certainly not underpaid. Whatever your view on compensation, you might want to check if insiders are buying or selling SEMAFO shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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 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. Thank you for reading.