Yahoo Finance What Did Roxgold Inc.'s (TSE:ROXG) CEO Take Home Last Year?
In 2012, John Dorward was appointed CEO of Roxgold Inc. (TSE:ROXG). First, this article will compare CEO compensation with compensation at similar sized companies. 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 Roxgold
How Does John Dorward's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Roxgold Inc. has a market cap of CA$525m, and reported total annual CEO compensation of CA$1.7m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CA$535k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$281m to CA$1.1b. The median total CEO compensation was CA$1.7m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Speaking on an industry level, we can see that nearly 91% of total compensation represents salary, while the remainder of 9.1% is other remuneration. It's interesting to note that Roxgold allocates a smaller portion of compensation to salary in comparison to the broader industry.
That means John Dorward 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 a visual representation of the CEO compensation at Roxgold, below.
Is Roxgold Inc. Growing?
On average over the last three years, Roxgold Inc. has shrunk earnings per share by 43% each year (measured with a line of best fit). It achieved revenue growth of 22% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Roxgold Inc. Been A Good Investment?
Roxgold Inc. has served shareholders reasonably well, with a total return of 12% 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...
John Dorward is paid around the same as most CEOs of similar size companies.
We feel that earnings per share have been a bit disappointing, but and we don't think the total returns are amazing. We're not saying the CEO pay is too generous, but one might argue that the company should improve returns to shareholders before increasing it. Looking into other areas, we've picked out 2 warning signs for Roxgold that investors should think about before committing capital to this stock.
If you want to buy a stock that is better than Roxgold, this free list of high return, low debt companies is a great place to look.
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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. Thank you for reading.
