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Is Capstone Mining Corp.'s (TSE:CS) CEO Pay Fair?

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Darren Pylot became the CEO of Capstone Mining Corp. (TSE:CS) in 1995. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out 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$272m, and total annual CEO compensation is US$3.1m. (This figure is for the year to December 2018). That's a modest increase of 7.1% on the prior year year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$702k. We examined companies with market caps from CA$133m to CA$533m, and discovered that the median CEO total compensation of that group was CA$811k.

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As you can see, Darren Pylot is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Capstone Mining Corp. is paying too much. 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 Capstone Mining, below.

TSX:CS CEO Compensation, April 9th 2019
TSX:CS CEO Compensation, April 9th 2019

Is Capstone Mining Corp. Growing?

Capstone Mining Corp. has increased its earnings per share (EPS) by an average of 89% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -3.4%.

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. You might want to check this free visual report on analyst forecasts for future earnings.

Has Capstone Mining Corp. Been A Good Investment?

Capstone Mining Corp. has served shareholders reasonably well, with a total return of 28% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

We examined the amount Capstone Mining Corp. 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.

Importantly, though, the company has impressed with its earnings per share growth, over three years. 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 Capstone Mining (free visualization of insider trades).

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

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.