Yahoo Finance How Should Investors Feel About Majestic Gold Corp.'s (CVE:MJS) CEO Pay?
Steve Kenwood has been the CEO of Majestic Gold Corp. (CVE:MJS) since 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Majestic Gold
How Does Steve Kenwood's Compensation Compare With Similar Sized Companies?
Our data indicates that Majestic Gold Corp. is worth CA$47m, and total annual CEO compensation was reported as US$130k for the year to September 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$120k. We looked at a group of companies with market capitalizations under CA$264m, and the median CEO total compensation was CA$180k.
So Steve Kenwood receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Majestic Gold, below.
Is Majestic Gold Corp. Growing?
Over the last three years Majestic Gold Corp. has grown its earnings per share (EPS) by an average of 71% per year (using a line of best fit). It saw its revenue drop 4.1% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Majestic Gold Corp. Been A Good Investment?
Given the total loss of 18% over three years, many shareholders in Majestic Gold Corp. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Steve Kenwood is paid around what is normal the leaders of comparable size companies.
We'd say the company can boast of its EPS growth, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. Whatever your view on compensation, you might want to check if insiders are buying or selling Majestic Gold shares (free trial).
If you want to buy a stock that is better than Majestic Gold, this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.
