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Does North American Palladium Ltd.'s (TSE:PDL) CEO Pay Compare Well With Peers?

Jim Gallagher has been the CEO of North American Palladium Ltd. (TSE:PDL) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for North American Palladium

How Does Jim Gallagher's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that North American Palladium Ltd. has a market cap of CA$930m, and is paying total annual CEO compensation of CA$1.0m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$475k. We examined companies with market caps from CA$524m to CA$2.1b, and discovered that the median CEO total compensation of that group was CA$2.0m.

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This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.

You can see, below, how CEO compensation at North American Palladium has changed over time.

TSX:PDL CEO Compensation, July 22nd 2019
TSX:PDL CEO Compensation, July 22nd 2019

Is North American Palladium Ltd. Growing?

Over the last three years North American Palladium Ltd. has grown its earnings per share (EPS) by an average of 136% per year (using a line of best fit). In the last year, its revenue is up 39%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.

Has North American Palladium Ltd. Been A Good Investment?

Boasting a total shareholder return of 198% over three years, North American Palladium Ltd. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

North American Palladium Ltd. is currently paying its CEO below what is normal for companies of its size. Since the business is growing, many would argue this suggests the pay is modest. The strong history of shareholder returns might even have some thinking that Jim Gallagher deserves a raise!

It's not often we see shareholders do so well, and yet the CEO is paid modestly. The cherry on top would be if company insiders are buying shares with their own money. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at North American Palladium.

If you want to buy a stock that is better than North American Palladium, this free list of high return, low debt companies is a great place to look.

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.

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. Thank you for reading.