Yahoo Finance Should You Be Pleased About The CEO Pay At Centerra Gold Inc.'s (TSE:CG)
In 2015 Scott Perry was appointed CEO of Centerra Gold Inc. (TSE:CG). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Centerra Gold
How Does Scott Perry's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Centerra Gold Inc. has a market cap of CA$2.8b, and reported total annual CEO compensation of US$4.5m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$750k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. When we examined a selection of companies with market caps ranging from CA$1.3b to CA$4.2b, we found the median CEO total compensation was CA$2.8m.
It would therefore appear that Centerra Gold Inc. pays Scott Perry more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Centerra Gold, below.
Is Centerra Gold Inc. Growing?
Over the last three years Centerra Gold Inc. has shrunk its earnings per share by an average of 20% per year (measured with a line of best fit). Its revenue is up 33% over last year.
The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has Centerra Gold Inc. Been A Good Investment?
I think that the total shareholder return of 44%, over three years, would leave most Centerra Gold Inc. shareholders smiling. 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 compared the total CEO remuneration paid by Centerra Gold Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Centerra Gold shares (free trial).
If you want to buy a stock that is better than Centerra Gold, this free list of high return, low debt companies is a great place to look.
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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