Dynacor Gold Mines Inc. (TSE:DNG) has exhibited strong share price growth in the past few years. However, its earnings growth has not kept up, suggesting that there may be something amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 17 June 2021. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

See our latest analysis for Dynacor Gold Mines

How Does Total Compensation For Jean Martineau Compare With Other Companies In The Industry?

According to our data, Dynacor Gold Mines Inc. has a market capitalization of CA$96m, and paid its CEO total annual compensation worth US$311k over the year to December 2020. That's a notable decrease of 11% on last year. Notably, the salary which is US$268.8k, represents most of the total compensation being paid.

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 Dynacor Gold Mines Inc. pays Jean Martineau north of the industry median. What's more, Jean Martineau holds CA$2.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 93% of total compensation represents salary and 7% is other remuneration. Dynacor Gold Mines is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Dynacor Gold Mines Inc.'s Growth

Over the last three years, Dynacor Gold Mines Inc. has shrunk its earnings per share by 3.3% per year. In the last year, its revenue is up 1.0%.

Overall this is not a very positive result for shareholders. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Dynacor Gold Mines Inc. Been A Good Investment?

Boasting a total shareholder return of 43% over three years, Dynacor Gold Mines Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

While the return to shareholders does look promising, it's hard to ignore the lack of earnings growth and this makes us question whether these strong returns will continue. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 4 warning signs for Dynacor Gold Mines 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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