Yahoo Finance Is Imperial Metals Corporation's (TSE:III) CEO Being Overpaid?
J. Kynoch is the CEO of Imperial Metals Corporation (TSE:III). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Imperial Metals
How Does J. Kynoch's Compensation Compare With Similar Sized Companies?
Our data indicates that Imperial Metals Corporation is worth CA$245m, and total annual CEO compensation was reported as CA$285k for the year to December 2018. Notably, the salary of CA$275k is the vast majority of the CEO compensation. We examined companies with market caps from CA$131m to CA$524m, and discovered that the median CEO total compensation of that group was CA$910k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Imperial Metals, below.
Is Imperial Metals Corporation Growing?
Over the last three years Imperial Metals Corporation has shrunk its earnings per share by an average of 11% per year (measured with a line of best fit). Its revenue is up 16% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Imperial Metals Corporation Been A Good Investment?
Given the total loss of 67% over three years, many shareholders in Imperial Metals Corporation are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Imperial Metals Corporation is currently paying its CEO below what is normal for companies of its size.
J. Kynoch is paid less than CEOs of similar size companies, but the company isn't growing and total shareholder returns have been disappointing. We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Imperial Metals (free visualization of insider trades).
If you want to buy a stock that is better than Imperial Metals, 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.
