Yahoo Finance Does Alamos Gold Inc’s (TSE:AGI) CEO Salary Reflect Performance?
John McCluskey became the CEO of Alamos Gold Inc (TSE:AGI) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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.
Check out our latest analysis for Alamos Gold
How Does John McCluskey’s Compensation Compare With Similar Sized Companies?
Our data indicates that Alamos Gold Inc is worth CA$2.1b, and total annual CEO compensation is US$4m. That’s a notable increase of 26% on last year. We looked at a group of companies with market capitalizations from US$1.0b to US$3.2b, and the median CEO compensation was US$2m.
Thus we can conclude that John McCluskey receives more in total compensation than the median of a group of companies in the same market, and of similar size to Alamos Gold Inc. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Alamos Gold has changed over time.
Is Alamos Gold Inc Growing?
Alamos Gold Inc has increased its earnings per share (EPS) by an average of 130% a year, over the last three years It achieved revenue growth of 24% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Alamos Gold Inc Been A Good Investment?
With a total shareholder return of 11% over three years, Alamos Gold Inc shareholders would, in general, be reasonably content. 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…
We examined the amount Alamos Gold Inc pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. We also note that, over the same time frame, shareholder returns haven’t been bad. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management. Whatever your view on compensation, you might want to check if insiders are buying or selling Alamos Gold Inc shares (free trial).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
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.
