Yahoo Finance Inter-Rock Minerals Inc.'s (CVE:IRO) CEO Compensation Is Looking A Bit Stretched At The Moment
Performance at Inter-Rock Minerals Inc. (CVE:IRO) has been reasonably good and CEO Michael Crombie has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 02 June 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.
See our latest analysis for Inter-Rock Minerals
How Does Total Compensation For Michael Crombie Compare With Other Companies In The Industry?
According to our data, Inter-Rock Minerals Inc. has a market capitalization of CA$9.6m, and paid its CEO total annual compensation worth US$271k over the year to December 2020. Notably, that's an increase of 8.4% over the year before. We note that the salary portion, which stands at US$259.0k constitutes the majority of total compensation received by the CEO.
On comparing similar-sized companies in the industry with market capitalizations below CA$242m, we found that the median total CEO compensation was US$180k. Hence, we can conclude that Michael Crombie is remunerated higher than the industry median. Furthermore, Michael Crombie directly owns CA$316k worth of shares in the company.
Component | 2020 | 2019 | Proportion (2020) |
Salary | US$259k | US$243k | 96% |
Other | US$12k | US$7.0k | 4% |
Total Compensation | US$271k | US$250k | 100% |
Talking in terms of the industry, salary represented approximately 51% of total compensation out of all the companies we analyzed, while other remuneration made up 49% of the pie. Inter-Rock Minerals pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Inter-Rock Minerals Inc.'s Growth
Inter-Rock Minerals Inc. has reduced its earnings per share by 4.3% a year over the last three years. In the last year, its revenue is up 20%.
The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Inter-Rock Minerals Inc. Been A Good Investment?
Inter-Rock Minerals Inc. has generated a total shareholder return of 15% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Michael receives almost all of their compensation through a salary. Some shareholders will be pleased by the relatively good results, however, the results could still be improved. Until EPS growth picks back up, we think shareholders may find it hard to justify increasing CEO pay given that they are already paid above industry average.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for Inter-Rock Minerals you should be aware of, and 1 of them makes us a bit uncomfortable.
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.
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