Yahoo Finance Is Atico Mining Corporation (CVE:ATY) Overpaying Its CEO?
Fernando Ganoza has been the CEO of Atico Mining Corporation (CVE:ATY) since 2012. 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. 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.
View our latest analysis for Atico Mining
How Does Fernando Ganoza's Compensation Compare With Similar Sized Companies?
Our data indicates that Atico Mining Corporation is worth CA$33m, and total annual CEO compensation was reported as US$690k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$340k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$123k.
Thus we can conclude that Fernando Ganoza receives more in total compensation than the median of a group of companies in the same market, and of similar size to Atico Mining Corporation. 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.
You can see a visual representation of the CEO compensation at Atico Mining, below.
Is Atico Mining Corporation Growing?
Over the last three years Atico Mining Corporation has grown its earnings per share (EPS) by an average of 75% per year (using a line of best fit). Its revenue is up 2.7% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Atico Mining Corporation Been A Good Investment?
Given the total loss of 38% over three years, many shareholders in Atico Mining Corporation are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared the total CEO remuneration paid by Atico Mining Corporation, 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.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Atico Mining (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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. Thank you for reading.
