Yahoo Finance Is Altius Minerals Corporation's (TSE:ALS) CEO Being Overpaid?
In 1997 Brian Dalton was appointed CEO of Altius Minerals Corporation (TSE:ALS). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Altius Minerals
How Does Brian Dalton's Compensation Compare With Similar Sized Companies?
According to our data, Altius Minerals Corporation has a market capitalization of CA$469m, and paid its CEO total annual compensation worth CA$1.4m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$450k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from CA$264m to CA$1.1b, we found the median CEO total compensation was CA$1.3m.
That means Brian Dalton receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Altius Minerals has changed from year to year.
Is Altius Minerals Corporation Growing?
Over the last three years Altius Minerals Corporation has grown its earnings per share (EPS) by an average of 72% per year (using a line of best fit). Its revenue is up 27% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Altius Minerals Corporation Been A Good Investment?
Given the total loss of 5.1% over three years, many shareholders in Altius Minerals Corporation are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Brian Dalton is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but it's disappointing to see negative shareholder returns over three years. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling Altius Minerals shares (free trial).
If you want to buy a stock that is better than Altius Minerals, this free list of high return, low debt companies is a great place to look.
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.
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