Yahoo Finance Our Take On Kinross Gold Corporation's (TSE:K) CEO Salary
In 2012 J. Rollinson was appointed CEO of Kinross Gold Corporation (TSE:K). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Kinross Gold
How Does J. Rollinson's Compensation Compare With Similar Sized Companies?
Our data indicates that Kinross Gold Corporation is worth CA$7.2b, and total annual CEO compensation was reported as US$6.2m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.0m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$3.5m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Kinross Gold stands. On an industry level, roughly 92% of total compensation represents salary and 8.1% is other remuneration. Kinross Gold sets aside a smaller share of compensation for salary, in comparison to the overall industry.
Thus we can conclude that J. Rollinson receives more in total compensation than the median of a group of companies in the same market, and of similar size to Kinross Gold Corporation. However, this doesn't necessarily mean the pay is too high. 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 a visual representation of the CEO compensation at Kinross Gold, below.
Is Kinross Gold Corporation Growing?
Over the last three years Kinross Gold Corporation has seen earnings per share (EPS) move in a positive direction by an average of 41% per year (using a line of best fit). In the last year, its revenue is up 8.9%.
This demonstrates that the company has been improving recently. A good result. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has Kinross Gold Corporation Been A Good Investment?
With a total shareholder return of 20% over three years, Kinross Gold Corporation shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
We compared the total CEO remuneration paid by Kinross Gold Corporation, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Looking at the same time period, we think that the shareholder returns are respectable. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. Moving away from CEO compensation for the moment, we've identified 2 warning signs for Kinross Gold that you should be aware of before investing.
If you want to buy a stock that is better than Kinross 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.
