Yahoo Finance Most Shareholders Will Probably Find That The CEO Compensation For Ero Copper Corp. (TSE:ERO) Is Reasonable
Key Insights
Ero Copper to hold its Annual General Meeting on 24th of April
CEO David Strang's total compensation includes salary of US$640.0k
Total compensation is similar to the industry average
Ero Copper's EPS grew by 15% over the past three years while total shareholder return over the past three years was 14%
Under the guidance of CEO David Strang, Ero Copper Corp. (TSE:ERO) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 24th of April. Here is our take on why we think the CEO compensation looks appropriate.
View our latest analysis for Ero Copper
Comparing Ero Copper Corp.'s CEO Compensation With The Industry
At the time of writing, our data shows that Ero Copper Corp. has a market capitalization of CA$2.9b, and reported total annual CEO compensation of US$3.1m for the year to December 2023. That's a notable increase of 23% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$640k.
In comparison with other companies in the Canadian Metals and Mining industry with market capitalizations ranging from CA$1.4b to CA$4.4b, the reported median CEO total compensation was US$2.7m. So it looks like Ero Copper compensates David Strang in line with the median for the industry. Moreover, David Strang also holds CA$118m worth of Ero Copper stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$640k | US$600k | 21% |
Other | US$2.5m | US$1.9m | 79% |
Total Compensation | US$3.1m | US$2.5m | 100% |
Talking in terms of the industry, salary represented approximately 95% of total compensation out of all the companies we analyzed, while other remuneration made up 5% of the pie. It's interesting to note that Ero Copper allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Ero Copper Corp.'s Growth Numbers
Ero Copper Corp.'s earnings per share (EPS) grew 15% per year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Ero Copper Corp. Been A Good Investment?
With a total shareholder return of 14% over three years, Ero Copper Corp. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
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 2 warning signs for Ero Copper (1 is a bit concerning!) that you should be aware of before investing here.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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.
