Yahoo Finance Here's Why Shareholders May Want To Be Cautious With Increasing Atico Mining Corporation's (CVE:ATY) CEO Pay Packet
Under the guidance of CEO Fernando Ganoza, Atico Mining Corporation (CVE:ATY) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 15 June 2021. However, some shareholders will still be cautious of paying the CEO excessively.
See our latest analysis for Atico Mining
Comparing Atico Mining Corporation's CEO Compensation With the industry
According to our data, Atico Mining Corporation has a market capitalization of CA$80m, and paid its CEO total annual compensation worth US$736k over the year to December 2020. We note that's an increase of 34% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$340k.
On comparing similar-sized companies in the industry with market capitalizations below CA$242m, we found that the median total CEO compensation was US$124k. Accordingly, our analysis reveals that Atico Mining Corporation pays Fernando Ganoza north of the industry median. Furthermore, Fernando Ganoza directly owns CA$1.2m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$340k | US$340k | 46% |
Other | US$396k | US$209k | 54% |
Total Compensation | US$736k | US$549k | 100% |
Speaking on an industry level, nearly 93% of total compensation represents salary, while the remainder of 7% is other remuneration. In Atico Mining's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Atico Mining Corporation's Growth
Over the past three years, Atico Mining Corporation has seen its earnings per share (EPS) grow by 46% per year. Its revenue is up 49% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Atico Mining Corporation Been A Good Investment?
Atico Mining Corporation has generated a total shareholder return of 16% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
To Conclude...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Atico Mining that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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.
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