Yahoo Finance Does Goldcorp Inc.’s (TSE:G) CEO Pay Matter?
Dave Garofalo has been the CEO of Goldcorp Inc. (TSE:G) since 2016. 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. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Goldcorp
How Does Dave Garofalo’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Goldcorp Inc. has a market cap of CA$11b, and is paying total annual CEO compensation of US$8.4m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$1.4m. We looked at a group of companies with market capitalizations from CA$5.4b to CA$16b, and the median CEO compensation was CA$5.5m.
As you can see, Dave Garofalo is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Goldcorp Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Goldcorp, below.
Is Goldcorp Inc. Growing?
Goldcorp Inc. has increased its earnings per share (EPS) by an average of 104% a year, over the last three years It saw its revenue drop -10% over the last year.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Goldcorp Inc. Been A Good Investment?
Since shareholders would have lost about 15% over three years, some Goldcorp Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
We compared total CEO remuneration at Goldcorp Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying Goldcorp shares with their own money (free access).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow 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.
