Yahoo Finance How Much is Rochester Resources' (CVE:RCT) CEO Getting Paid?
Nick DeMare has been the CEO of Rochester Resources Ltd. (CVE:RCT) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Check out our latest analysis for Rochester Resources
Comparing Rochester Resources Ltd.'s CEO Compensation With the industry
At the time of writing, our data shows that Rochester Resources Ltd. has a market capitalization of CA$2.0m, and reported total annual CEO compensation of CA$75k for the year to May 2020. That's a slight decrease of 7.9% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$24k.
On comparing similar-sized companies in the industry with market capitalizations below CA$260m, we found that the median total CEO compensation was CA$155k. This suggests that Nick DeMare is paid below the industry median. What's more, Nick DeMare holds CA$188k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2020 | 2019 | Proportion (2020) |
Salary | CA$24k | CA$30k | 32% |
Other | CA$51k | CA$51k | 68% |
Total Compensation | CA$75k | CA$82k | 100% |
Talking in terms of the industry, salary represented approximately 89% of total compensation out of all the companies we analyzed, while other remuneration made up 11% of the pie. In Rochester Resources' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Rochester Resources Ltd.'s Growth
Over the past three years, Rochester Resources Ltd. has seen its earnings per share (EPS) grow by 18% per year. It achieved revenue growth of 38% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Rochester Resources Ltd. Been A Good Investment?
Most shareholders would probably be pleased with Rochester Resources Ltd. for providing a total return of 143% over three years. 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...
As we noted earlier, Rochester Resources pays its CEO lower than the norm for similar-sized companies belonging to the same industry. When taking into account the company's strong EPS growth over the past three years, it appears CEO compensation is modest. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Rochester Resources (2 shouldn't be ignored!) that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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.
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