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Is Abcourt Mines Inc.'s (CVE:ABI) CEO Paid At A Competitive Rate?

The CEO of Abcourt Mines Inc. (CVE:ABI) is Renaud Hinse. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Abcourt Mines

How Does Renaud Hinse's Compensation Compare With Similar Sized Companies?

According to our data, Abcourt Mines Inc. has a market capitalization of CA$14m, and paid its CEO total annual compensation worth CA$379k over the year to June 2019. Notably, the salary of CA$379k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under CA$283m, and the median CEO total compensation was CA$224k.

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Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Abcourt Mines stands. On an industry level, roughly 92% of total compensation represents salary and 8.0% is other remuneration. So it seems like there isn't a significant difference between Abcourt Mines and the broader market, in terms of salary allocation in the overall compensation package.

Thus we can conclude that Renaud Hinse receives more in total compensation than the median of a group of companies in the same market, and of similar size to Abcourt Mines Inc.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. The graphic below shows how CEO compensation at Abcourt Mines has changed from year to year.

TSXV:ABI CEO Compensation April 7th 2020
TSXV:ABI CEO Compensation April 7th 2020

Is Abcourt Mines Inc. Growing?

Over the last three years Abcourt Mines Inc. has seen earnings per share (EPS) move in a positive direction by an average of 11% per year (using a line of best fit). It saw its revenue drop 1.6% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. 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 Abcourt Mines Inc. Been A Good Investment?

Given the total loss of 55% over three years, many shareholders in Abcourt Mines Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared the total CEO remuneration paid by Abcourt Mines Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

However we must not forget that the EPS growth has been very strong over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is moving in the right direction, we'd say shareholders would want better returns before the CEO is paid much more. On another note, we've spotted 3 warning signs for Abcourt Mines that investors should look into moving forward.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.