Yahoo Finance Should You Be Pleased About The CEO Pay At Agnico Eagle Mines Limited's (NYSE:AEM)
Sean Boyd became the CEO of Agnico Eagle Mines Limited (NYSE:AEM) in 1998. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Agnico Eagle Mines
How Does Sean Boyd's Compensation Compare With Similar Sized Companies?
According to our data, Agnico Eagle Mines Limited has a market capitalization of US$9.3b, and paid its CEO total annual compensation worth US$9.5m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$1.4m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$7.6m.
That means Sean Boyd receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Agnico Eagle Mines has changed from year to year.
Is Agnico Eagle Mines Limited Growing?
On average over the last three years, Agnico Eagle Mines Limited has shrunk earnings per share by 50% each year (measured with a line of best fit). In the last year, its revenue is up 14%.
Sadly for shareholders, earnings per share are actually down, over three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Agnico Eagle Mines Limited Been A Good Investment?
With a three year total loss of 9.3%, Agnico Eagle Mines Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Sean Boyd is paid around the same as most CEOs of similar size companies.
The company isn't growing EPS, and shareholder returns have been disappointing. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. Taking a breather from CEO compensation, we've spotted 5 warning signs for Agnico Eagle Mines (of which 1 is concerning!) you should know about in order to have a holistic understanding of the stock.
Important note: Agnico Eagle Mines may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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