Yahoo Finance Here's Why Shareholders May Want To Be Cautious With Increasing Kinross Gold Corporation's (TSE:K) CEO Pay Packet
Under the guidance of CEO J. Rollinson, Kinross Gold Corporation (TSE:K) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 12 May 2021. However, some shareholders may still want to keep CEO compensation within reason.
See our latest analysis for Kinross Gold
Comparing Kinross Gold Corporation's CEO Compensation With the industry
According to our data, Kinross Gold Corporation has a market capitalization of CA$11b, and paid its CEO total annual compensation worth US$7.7m over the year to December 2020. Notably, that's an increase of 12% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.2m.
On examining similar-sized companies in the industry with market capitalizations between CA$4.9b and CA$15b, we discovered that the median CEO total compensation of that group was US$4.9m. Hence, we can conclude that J. Rollinson is remunerated higher than the industry median. What's more, J. Rollinson holds CA$35m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$1.2m | US$1.1m | 15% |
Other | US$6.5m | US$5.8m | 85% |
Total Compensation | US$7.7m | US$6.9m | 100% |
Speaking on an industry level, nearly 95% of total compensation represents salary, while the remainder of 5% is other remuneration. In Kinross Gold's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Kinross Gold Corporation's Growth Numbers
Kinross Gold Corporation's earnings per share (EPS) grew 44% per year over the last three years. It achieved revenue growth of 20% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Kinross Gold Corporation Been A Good Investment?
We think that the total shareholder return of 91%, over three years, would leave most Kinross Gold Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 1 which is a bit concerning) in Kinross Gold we think you should know about.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
