Yahoo Finance Should You Be Pleased About The CEO Pay At Amerigo Resources Ltd.'s (TSE:ARG)
In 2015 Rob Henderson was appointed CEO of Amerigo Resources Ltd. (TSE:ARG). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Amerigo Resources
How Does Rob Henderson's Compensation Compare With Similar Sized Companies?
Our data indicates that Amerigo Resources Ltd. is worth CA$106m, and total annual CEO compensation is US$1.2m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$300k. We took a group of companies with market capitalizations below CA$266m, and calculated the median CEO total compensation to be CA$143k.
As you can see, Rob Henderson is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Amerigo Resources Ltd. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Amerigo Resources, below.
Is Amerigo Resources Ltd. Growing?
Amerigo Resources Ltd. has increased its earnings per share (EPS) by an average of 89% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -15%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Amerigo Resources Ltd. Been A Good Investment?
Most shareholders would probably be pleased with Amerigo Resources Ltd. for providing a total return of 281% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We examined the amount Amerigo Resources Ltd. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying Amerigo Resources shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.
