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What Did Alamos Gold Inc.'s (TSE:AGI) CEO Take Home Last Year?

In 2015 John McCluskey was appointed CEO of Alamos Gold Inc. (TSE:AGI). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.

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Check out our latest analysis for Alamos Gold

How Does John McCluskey's Compensation Compare With Similar Sized Companies?

According to our data, Alamos Gold Inc. has a market capitalization of CA$2.4b, and pays its CEO total annual compensation worth US$2.6m. (This number is for the twelve months until December 2018). That's less than last year. We think total compensation is more important but we note that the CEO salary is lower, at US$618k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$1.0b to US$3.2b. The median total CEO compensation was US$2.3m.

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That means John McCluskey 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.

You can see, below, how CEO compensation at Alamos Gold has changed over time.

TSX:AGI CEO Compensation, May 25th 2019
TSX:AGI CEO Compensation, May 25th 2019

Is Alamos Gold Inc. Growing?

On average over the last three years, Alamos Gold Inc. has grown earnings per share (EPS) by 116% each year (using a line of best fit). It achieved revenue growth of 6.7% over the last year.

This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.

Has Alamos Gold Inc. Been A Good Investment?

Given the total loss of 24% over three years, many shareholders in Alamos Gold Inc. 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...

John McCluskey is paid around the same as most CEOs of similar size companies.

We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Alamos Gold (free visualization of insider trades).

Important note: Alamos Gold may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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.