Yahoo Finance Here's Why We Think Dundee Precious Metals Inc.'s (TSE:DPM) CEO Compensation Looks Fair for the time being
Key Insights
Dundee Precious Metals to hold its Annual General Meeting on 8th of May
Salary of US$588.7k is part of CEO David Rae's total remuneration
The overall pay is comparable to the industry average
Dundee Precious Metals' total shareholder return over the past three years was 23% while its EPS was down 3.2% over the past three years
CEO David Rae has done a decent job of delivering relatively good performance at Dundee Precious Metals Inc. (TSE:DPM) recently. As shareholders go into the upcoming AGM on 8th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
See our latest analysis for Dundee Precious Metals
How Does Total Compensation For David Rae Compare With Other Companies In The Industry?
At the time of writing, our data shows that Dundee Precious Metals Inc. has a market capitalization of CA$1.9b, and reported total annual CEO compensation of US$2.7m for the year to December 2023. Notably, that's an increase of 11% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$589k.
For comparison, other companies in the Canadian Metals and Mining industry with market capitalizations ranging between CA$1.4b and CA$4.4b had a median total CEO compensation of US$2.6m. From this we gather that David Rae is paid around the median for CEOs in the industry. What's more, David Rae holds CA$1.2m worth of shares in the company in their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$589k | US$554k | 22% |
Other | US$2.1m | US$1.9m | 78% |
Total Compensation | US$2.7m | US$2.4m | 100% |
Talking in terms of the industry, salary represented approximately 94% of total compensation out of all the companies we analyzed, while other remuneration made up 6% of the pie. In Dundee Precious Metals' 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.
A Look at Dundee Precious Metals Inc.'s Growth Numbers
Over the last three years, Dundee Precious Metals Inc. has shrunk its earnings per share by 3.2% per year. It achieved revenue growth of 20% over the last year.
Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Dundee Precious Metals Inc. Been A Good Investment?
Dundee Precious Metals Inc. has generated a total shareholder return of 23% over three years, so most shareholders would 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.
In Summary...
The overall company performance has been commendable, however there are still areas for improvement. We reckon that there are some shareholders who may be hesitant to increase CEO pay further until EPS growth starts to improve, despite the robust revenue growth.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Dundee Precious Metals that investors should be aware of in a dynamic business environment.
Important note: Dundee Precious Metals is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
