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Does EMX Royalty Corporation's (CVE:EMX) CEO Pay Reflect Performance?

Simply Wall St
·4-min read

In 2003, Dave Cole was appointed CEO of EMX Royalty Corporation (CVE:EMX). First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for EMX Royalty

How Does Dave Cole's Compensation Compare With Similar Sized Companies?

According to our data, EMX Royalty Corporation has a market capitalization of CA$208m, and paid its CEO total annual compensation worth CA$697k over the year to December 2019. That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at CA$431k. We took a group of companies with market capitalizations below CA$282m, and calculated the median CEO total compensation to be CA$218k.

Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Speaking on an industry level, we can see that nearly 91% of total compensation represents salary, while the remainder of 9.1% is other remuneration. Readers will want to know that EMX Royalty pays a modest slice of remuneration through salary, as compared to the wider sector.

It would therefore appear that EMX Royalty Corporation pays Dave Cole 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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. You can see, below, how CEO compensation at EMX Royalty has changed over time.

TSXV:EMX CEO Compensation May 18th 2020
TSXV:EMX CEO Compensation May 18th 2020

Is EMX Royalty Corporation Growing?

Over the last three years EMX Royalty Corporation has seen earnings per share (EPS) move in a positive direction by an average of 54% per year (using a line of best fit). In the last year, its revenue is up 19%.

This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has EMX Royalty Corporation Been A Good Investment?

Most shareholders would probably be pleased with EMX Royalty Corporation for providing a total return of 108% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared the total CEO remuneration paid by EMX Royalty Corporation, 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.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Shifting gears from CEO pay for a second, we've picked out 2 warning signs for EMX Royalty that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.