Most Shareholders Will Probably Agree With Athabasca Minerals Inc.'s (CVE:AMI) CEO Compensation

Performance at Athabasca Minerals Inc. (CVE:AMI) has been reasonably good and CEO Rob Beekhuizen has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 22 June 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.

See our latest analysis for Athabasca Minerals

How Does Total Compensation For Rob Beekhuizen Compare With Other Companies In The Industry?

According to our data, Athabasca Minerals Inc. has a market capitalization of CA$16m, and paid its CEO total annual compensation worth CA$374k over the year to December 2020. Notably, that's a decrease of 22% over the year before. We note that the salary portion, which stands at CA$275.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under CA$243m, the reported median total CEO compensation was CA$374k. From this we gather that Rob Beekhuizen is paid around the median for CEOs in the industry. Furthermore, Rob Beekhuizen directly owns CA$355k worth of shares in the company.

On an industry level, roughly 55% of total compensation represents salary and 45% is other remuneration. Athabasca Minerals pays out 74% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Athabasca Minerals Inc.'s Growth Numbers

Over the past three years, Athabasca Minerals Inc. has seen its earnings per share (EPS) grow by 6.0% per year. Its revenue is down 22% over the previous year.

We would prefer it if there was revenue growth, but it is good to see a modest EPS growth at least. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Athabasca Minerals Inc. Been A Good Investment?

Athabasca Minerals Inc. has served shareholders reasonably well, with a total return of 24% over three years. 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.

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. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 5 warning signs for Athabasca Minerals (1 is concerning!) that you should be aware of before investing here.

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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