Yahoo Finance Increases to Excelsior Mining Corp.'s (TSE:MIN) CEO Compensation Might Cool off for now
Key Insights
Excelsior Mining to hold its Annual General Meeting on 20th of June
CEO Stephen Twyerould's total compensation includes salary of US$409.3k
The overall pay is 275% above the industry average
Over the past three years, Excelsior Mining's EPS grew by 44% and over the past three years, the total loss to shareholders 72%
Shareholders of Excelsior Mining Corp. (TSE:MIN) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 20th of June. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
View our latest analysis for Excelsior Mining
How Does Total Compensation For Stephen Twyerould Compare With Other Companies In The Industry?
Our data indicates that Excelsior Mining Corp. has a market capitalization of CA$52m, and total annual CEO compensation was reported as US$523k for the year to December 2023. That's a notable increase of 22% on last year. In particular, the salary of US$409.3k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the Canadian Metals and Mining industry with market capitalizations under CA$275m, the reported median total CEO compensation was US$140k. Accordingly, our analysis reveals that Excelsior Mining Corp. pays Stephen Twyerould north of the industry median. What's more, Stephen Twyerould holds CA$1.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$409k | US$410k | 78% |
Other | US$114k | US$20k | 22% |
Total Compensation | US$523k | US$430k | 100% |
Talking in terms of the industry, salary represented approximately 94% of total compensation out of all the companies we analyzed, while other remuneration made up 6% of the pie. Excelsior Mining sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Excelsior Mining Corp.'s Growth
Over the past three years, Excelsior Mining Corp. has seen its earnings per share (EPS) grow by 44% per year. It saw its revenue drop 47% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Excelsior Mining Corp. Been A Good Investment?
The return of -72% over three years would not have pleased Excelsior Mining Corp. shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
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 identified 7 warning signs for Excelsior Mining (3 make us uncomfortable!) that you should be aware of before investing here.
Switching gears from Excelsior Mining, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
