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How Much Is Azucar Minerals' (CVE:AMZ) CEO Getting Paid?

The CEO of Azucar Minerals Ltd. (CVE:AMZ) is Morgan Poliquin, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Azucar Minerals

How Does Total Compensation For Morgan Poliquin Compare With Other Companies In The Industry?

At the time of writing, our data shows that Azucar Minerals Ltd. has a market capitalization of CA$13m, and reported total annual CEO compensation of CA$134k for the year to December 2019. That's a slightly lower by 4.5% over the previous year. It is worth noting that the CEO compensation consists entirely of the salary, worth CA$134k.

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In comparison with other companies in the industry with market capitalizations under CA$263m, the reported median total CEO compensation was CA$156k. This suggests that Azucar Minerals remunerates its CEO largely in line with the industry average. Furthermore, Morgan Poliquin directly owns CA$282k worth of shares in the company.

Component

2019

2018

Proportion (2019)

Salary

CA$134k

CA$101k

100%

Other

-

CA$40k

-

Total Compensation

CA$134k

CA$140k

100%

On an industry level, around 83% of total compensation represents salary and 17% is other remuneration. Speaking on a company level, Azucar Minerals prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
ceo-compensation

A Look at Azucar Minerals Ltd.'s Growth Numbers

Azucar Minerals Ltd.'s earnings per share (EPS) grew 1.1% per year over the last three years. In the last year, its revenue is up 17%.

This revenue growth could really point to a brighter future. And, while modest, the EPS growth is noticeable. So while performance isn't amazing, we think it really does seem quite respectable. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Azucar Minerals Ltd. Been A Good Investment?

Given the total shareholder loss of 86% over three years, many shareholders in Azucar Minerals Ltd. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Azucar Minerals rewards its CEO solely through a salary, ignoring non-salary benefits completely. As previously discussed, Morgan is compensated close to the median for companies of its size, and which belong to the same industry. But with negative shareholder returns and unimpressive EPS growth, shareholders will surely be disturbed. CEO pay isn't exceptionally high, but considering poor performance, shareholders will likely hold off support for a raise until results improve.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Azucar Minerals (of which 1 is a bit concerning!) that you should know about in order to have a holistic understanding of the stock.

Important note: Azucar Minerals is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.