Yahoo Finance What Can We Conclude About Golden Minerals' (NYSEMKT:AUMN) CEO Pay?
Want to participate in a short research study? Help shape the future of investing tools and earn a $40 gift card!
Warren Rehn has been the CEO of Golden Minerals Company (NYSEMKT:AUMN) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Golden Minerals pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Golden Minerals
Comparing Golden Minerals Company's CEO Compensation With the industry
Our data indicates that Golden Minerals Company has a market capitalization of US$70m, and total annual CEO compensation was reported as US$485k for the year to December 2019. Notably, that's a decrease of 22% over the year before. Notably, the salary which is US$330.0k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$235k. Hence, we can conclude that Warren Rehn is remunerated higher than the industry median. What's more, Warren Rehn holds US$281k worth of shares in the company in their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$330k | US$330k | 68% |
Other | US$155k | US$296k | 32% |
Total Compensation | US$485k | US$626k | 100% |
On an industry level, roughly 36% of total compensation represents salary and 64% is other remuneration. It's interesting to note that Golden Minerals pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Golden Minerals Company's Growth
Over the last three years, Golden Minerals Company has shrunk its earnings per share by 18% per year. Its revenue is down 6.9% over the previous year.
The decline in earnings is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Golden Minerals Company Been A Good Investment?
Golden Minerals Company has generated a total shareholder return of 1.9% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.
To Conclude...
As we noted earlier, Golden Minerals pays its CEO higher than the norm for similar-sized companies belonging to the same industry. This doesn't look great when you realize that the company has been suffering from negative earnings growth for the last three years. While shareholder returns are acceptable, they don't delight. So we think more research is needed, but we don't think the CEO is underpaid.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Golden Minerals that you should be aware of before investing.
Important note: Golden Minerals is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
