Canada markets closed

Is Intercontinental Gold and Metals Ltd.'s (CVE:ICAU) CEO Pay Fair?

Simply Wall St

In 2015 Gord Glenn was appointed CEO of Intercontinental Gold and Metals Ltd. (CVE:ICAU). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Intercontinental Gold and Metals

How Does Gord Glenn's Compensation Compare With Similar Sized Companies?

According to our data, Intercontinental Gold and Metals Ltd. has a market capitalization of CA$2.2m, and pays its CEO total annual compensation worth CA$328k. (This figure is for the year to March 2018). Notably, the salary of CA$319k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below CA$263m, and calculated the median CEO total compensation to be CA$130k.

As you can see, Gord Glenn is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Intercontinental Gold and Metals Ltd. is paying too much. 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 Intercontinental Gold and Metals has changed over time.

TSXV:ICAU CEO Compensation, July 30th 2019

Is Intercontinental Gold and Metals Ltd. Growing?

On average over the last three years, Intercontinental Gold and Metals Ltd. has grown earnings per share (EPS) by 26% each year (using a line of best fit). It achieved revenue growth of 635% over the last year.

This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Intercontinental Gold and Metals Ltd. Been A Good Investment?

Boasting a total shareholder return of 50% over three years, Intercontinental Gold and Metals Ltd. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

We compared total CEO remuneration at Intercontinental Gold and Metals Ltd. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Intercontinental Gold and Metals (free visualization of insider trades).

Important note: Intercontinental Gold and Metals may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.