Yahoo Finance Does Aurion Resources Ltd.'s (CVE:AU) CEO Pay Compare Well With Peers?
In 2008 Mike Basha was appointed CEO of Aurion Resources Ltd. (CVE:AU). 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 - 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.
See our latest analysis for Aurion Resources
How Does Mike Basha's Compensation Compare With Similar Sized Companies?
According to our data, Aurion Resources Ltd. has a market capitalization of CA$72m, and paid its CEO total annual compensation worth CA$200k over the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CA$200k. We examined a group of similar sized companies, with market capitalizations of below CA$279m. The median CEO total compensation in that group is CA$219k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Aurion Resources. On a sector level, around 92% of total compensation represents salary and 8.0% is other remuneration. So it seems like there isn't a significant difference between Aurion Resources and the broader market, in terms of salary allocation in the overall compensation package.
That means Mike Basha 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. The graphic below shows how CEO compensation at Aurion Resources has changed from year to year.
Is Aurion Resources Ltd. Growing?
Over the last three years Aurion Resources Ltd. has seen earnings per share (EPS) move in a positive direction by an average of 1.3% per year (using a line of best fit). It achieved revenue growth of 308% over the last year.
I like the look of the strong year-on-year improvement in revenue. With that in mind, the modestly improving EPS seems positive. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! You might want to check this free visual report on analyst forecasts for future earnings.
Has Aurion Resources Ltd. Been A Good Investment?
Given the total loss of 51% over three years, many shareholders in Aurion Resources Ltd. 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...
Mike Basha is paid around what is normal for the leaders of comparable size companies.
We would like to see somewhat stronger per share growth. And it's hard to argue that the returns over the last three years have delighted. So suffice it to say we don't think the compensation is modest. Taking a breather from CEO compensation, we've spotted 6 warning signs for Aurion Resources (of which 2 shouldn't be ignored!) you should know about in order to have a holistic understanding of the stock.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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