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Is Capstone Mining Corp’s (TSE:CS) CEO Paid At A Competitive Rate?

In 1995 Darren Pylot was appointed CEO of Capstone Mining Corp (TSE:CS). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Capstone Mining

How Does Darren Pylot’s Compensation Compare With Similar Sized Companies?

Our data indicates that Capstone Mining Corp is worth CA$204m, and total annual CEO compensation is US$3m. That’s below the compensation, last year. We looked at a group of companies with market capitalizations from CA$131m to CA$525m, and the median CEO compensation was CA$864k.

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Thus we can conclude that Darren Pylot receives more in total compensation than the median of a group of companies in the same market, and of similar size to Capstone Mining Corp. However, this doesn’t necessarily mean the pay 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 Capstone Mining, below.

TSX:CS CEO Compensation October 31st 18
TSX:CS CEO Compensation October 31st 18

Is Capstone Mining Corp Growing?

Capstone Mining Corp has increased its earnings per share (EPS) by an average of 64% a year, over the last three years It achieved revenue growth of 15% over the last year.

This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has Capstone Mining Corp Been A Good Investment?

With a three year total loss of 24%, Capstone Mining Corp would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

We compared total CEO remuneration at Capstone Mining Corp with the amount paid at companies with a similar market capitalization. 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. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Capstone Mining Corp (free visualization of insider trades).

Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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.