Yahoo Finance What Did SEMAFO Inc.’s (TSE:SMF) CEO Take Home Last Year?
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Benoit Desormeaux has been the CEO of SEMAFO Inc. (TSE:SMF) since 2012. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for SEMAFO
How Does Benoit Desormeaux’s Compensation Compare With Similar Sized Companies?
Our data indicates that SEMAFO Inc. is worth CA$938m, and total annual CEO compensation is US$1.8m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$489k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$530m to CA$2.1b. The median total CEO compensation was CA$2.0m.
So Benoit Desormeaux is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at SEMAFO has changed over time.
Is SEMAFO Inc. Growing?
SEMAFO Inc. has reduced its earnings per share by an average of 60% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down -7.6%.
Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.
Has SEMAFO Inc. Been A Good Investment?
With a three year total loss of 27%, SEMAFO Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
Benoit Desormeaux is paid around the same as most CEOs of similar size companies.
The company isn’t growing EPS, and shareholder returns have been disappointing. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling SEMAFO (free visualization of insider trades).
Important note: SEMAFO 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.
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.
