Should You Worry About Pan American Silver Corp.’s (TSE:PAAS) CEO Pay Cheque?
In 2016 Michael Steinmann was appointed CEO of Pan American Silver Corp. (TSE:PAAS). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Pan American Silver
How Does Michael Steinmann’s Compensation Compare With Similar Sized Companies?
Our data indicates that Pan American Silver Corp. is worth CA$2.9b, and total annual CEO compensation is US$3.5m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at US$900k. We examined companies with market caps from CA$1.3b to CA$4.3b, and discovered that the median CEO compensation of that group was CA$2.8m.
So Michael Steinmann is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Pan American Silver, below.
Is Pan American Silver Corp. Growing?
Over the last three years Pan American Silver Corp. has grown its earnings per share (EPS) by an average of 114% per year. In the last year, its revenue is up 7.1%.
This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Pan American Silver Corp. Been A Good Investment?
I think that the total shareholder return of 117%, over three years, would leave most Pan American Silver Corp. shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
Remuneration for Michael Steinmann is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Pan American Silver.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
