Yahoo Finance Is Agnico Eagle Mines Limited’s (NYSE:AEM) CEO Pay Fair?
Sean Boyd became the CEO of Agnico Eagle Mines Limited (NYSE:AEM) in 1998. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. 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.
See our latest analysis for Agnico Eagle Mines
How Does Sean Boyd’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Agnico Eagle Mines Limited has a market cap of US$8.2b, and is paying total annual CEO compensation of US$10m. We note that’s an increase of 20% above last year. When we examined a selection of companies with market caps ranging from US$4.0b to US$12.0b, we found the median CEO compensation was US$7m.
It would therefore appear that Agnico Eagle Mines Limited pays Sean Boyd more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Agnico Eagle Mines, below.
Is Agnico Eagle Mines Limited Growing?
Agnico Eagle Mines Limited has increased its earnings per share (EPS) by an average of 48% a year, over the last three years It achieved revenue growth of 1.9% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Agnico Eagle Mines Limited Been A Good Investment?
Agnico Eagle Mines Limited has served shareholders reasonably well, with a total return of 30% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
We examined the amount Agnico Eagle Mines Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Agnico Eagle Mines Limited (free visualization of insider trades).
Or you might rather take a peek at this analytical visualization of historic cash flow, 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.
