Yahoo Finance We Discuss Why Franco-Nevada Corporation's (TSE:FNV) CEO Will Find It Hard To Get A Pay Rise From Shareholders This Year
Key Insights
Franco-Nevada's Annual General Meeting to take place on 1st of May
Salary of US$679.3k is part of CEO Paul Brink's total remuneration
The overall pay is 37% below the industry average
Franco-Nevada's three-year loss to shareholders was 0.7% while its EPS was down 15% over the past three years
Performance at Franco-Nevada Corporation (TSE:FNV) has not been particularly rosy recently and shareholders will likely be holding CEO Paul Brink and the board accountable for this. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 1st of May. The data we gathered below shows that CEO compensation looks acceptable for now.
View our latest analysis for Franco-Nevada
How Does Total Compensation For Paul Brink Compare With Other Companies In The Industry?
Our data indicates that Franco-Nevada Corporation has a market capitalization of CA$32b, and total annual CEO compensation was reported as US$3.2m for the year to December 2023. That's a notable decrease of 19% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$679k.
In comparison with other companies in the Canadian Metals and Mining industry with market capitalizations over CA$11b, the reported median total CEO compensation was US$5.1m. Accordingly, Franco-Nevada pays its CEO under the industry median. Furthermore, Paul Brink directly owns CA$41m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$679k | US$665k | 21% |
Other | US$2.6m | US$3.3m | 79% |
Total Compensation | US$3.2m | US$4.0m | 100% |
On an industry level, roughly 94% of total compensation represents salary and 6% is other remuneration. It's interesting to note that Franco-Nevada allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Franco-Nevada Corporation's Growth
Franco-Nevada Corporation has reduced its earnings per share by 15% a year over the last three years. Its revenue is down 7.4% over the previous year.
Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Franco-Nevada Corporation Been A Good Investment?
With a three year total loss of 0.7% for the shareholders, Franco-Nevada Corporation would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
Shareholders may want to check for free if Franco-Nevada insiders are buying or selling shares.
Switching gears from Franco-Nevada, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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