Yahoo Finance Does Franco-Nevada Corporation's (TSE:FNV) CEO Salary Compare Well With Others?
The CEO of Franco-Nevada Corporation (TSE:FNV) is David Harquail. First, this article will compare CEO compensation with compensation at other large companies. 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. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Franco-Nevada
How Does David Harquail's Compensation Compare With Similar Sized Companies?
Our data indicates that Franco-Nevada Corporation is worth CA$28b, and total annual CEO compensation was reported as US$4.1m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$813k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a group of companies with market caps over CA$11b, we found that their median CEO total compensation was CA$9.3m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
This would give shareholders a good impression of the company, since most large companies pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Franco-Nevada, below.
Is Franco-Nevada Corporation Growing?
Franco-Nevada Corporation has increased its earnings per share (EPS) by an average of 10% a year, over the last three years (using a line of best fit). Its revenue is up 9.2% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. 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?
Most shareholders would probably be pleased with Franco-Nevada Corporation for providing a total return of 78% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
It appears that Franco-Nevada Corporation remunerates its CEO below most large companies.
Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that David Harquail deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. Whatever your view on compensation, you might want to check if insiders are buying or selling Franco-Nevada shares (free trial).
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
