How Much Did Cerro Grande Mining Corporation's (CNSX:CEG) CEO Pocket Last Year?
Stephen Houghton is the CEO of Cerro Grande Mining Corporation (CNSX:CEG). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Cerro Grande Mining
How Does Stephen Houghton's Compensation Compare With Similar Sized Companies?
According to our data, Cerro Grande Mining Corporation has a market capitalization of CA$1.7m, and paid its CEO total annual compensation worth US$85k over the year to September 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$76k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$136k.
A first glance this seems like a real positive for shareholders, since Stephen Houghton is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Cerro Grande Mining has changed over time.
Is Cerro Grande Mining Corporation Growing?
Over the last three years Cerro Grande Mining Corporation has grown its earnings per share (EPS) by an average of 90% per year (using a line of best fit). In the last year, its revenue is down 97%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Cerro Grande Mining Corporation Been A Good Investment?
With a three year total loss of 83%, Cerro Grande Mining Corporation would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
It appears that Cerro Grande Mining Corporation remunerates its CEO below most similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. So while we don't think, Stephen Houghton is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out. In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Cerro Grande Mining (free visualization of insider trades).
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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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.
