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Our Take On Galantas Gold Corporation's (CVE:GAL) CEO Salary

Roland Phelps has been the CEO of Galantas Gold Corporation (CVE:GAL) since 2003. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Galantas Gold

How Does Roland Phelps's Compensation Compare With Similar Sized Companies?

According to our data, Galantas Gold Corporation has a market capitalization of CA$8.1m, and paid its CEO total annual compensation worth CA$362k over the year to December 2018. Notably, the salary of CA$346k is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below CA$266m. The median CEO total compensation in that group is CA$181k.

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Thus we can conclude that Roland Phelps receives more in total compensation than the median of a group of companies in the same market, and of similar size to Galantas Gold Corporation. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see, below, how CEO compensation at Galantas Gold has changed over time.

TSXV:GAL CEO Compensation, December 3rd 2019
TSXV:GAL CEO Compensation, December 3rd 2019

Is Galantas Gold Corporation Growing?

Earnings per share at Galantas Gold Corporation are much the same as they were three years ago, albeit with a positive trend. In the last year, its revenue is down 92%.

I generally like to see a little revenue growth, but the modest improvement in EPS is good. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Galantas Gold Corporation Been A Good Investment?

Since shareholders would have lost about 80% over three years, some Galantas Gold Corporation shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We compared the total CEO remuneration paid by Galantas Gold Corporation, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling Galantas Gold 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.