Yahoo Finance We Think Shareholders Will Probably Be Generous With Cameco Corporation's (TSE:CCO) CEO Compensation
Key Insights
Cameco will host its Annual General Meeting on 9th of May
Total pay for CEO Tim Gitzel includes CA$1.17m salary
Total compensation is similar to the industry average
Cameco's total shareholder return over the past three years was 202% while its EPS grew by 99% over the past three years
It would be hard to discount the role that CEO Tim Gitzel has played in delivering the impressive results at Cameco Corporation (TSE:CCO) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 9th of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.
Check out our latest analysis for Cameco
How Does Total Compensation For Tim Gitzel Compare With Other Companies In The Industry?
Our data indicates that Cameco Corporation has a market capitalization of CA$28b, and total annual CEO compensation was reported as CA$8.0m for the year to December 2023. That's just a smallish increase of 7.9% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$1.2m.
On comparing similar companies in the Canadian Oil and Gas industry with market capitalizations above CA$11b, we found that the median total CEO compensation was CA$10m. This suggests that Cameco remunerates its CEO largely in line with the industry average. Furthermore, Tim Gitzel directly owns CA$35m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$1.2m | CA$1.1m | 15% |
Other | CA$6.8m | CA$6.3m | 85% |
Total Compensation | CA$8.0m | CA$7.4m | 100% |
On an industry level, around 37% of total compensation represents salary and 63% is other remuneration. It's interesting to note that Cameco allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Cameco Corporation's Growth Numbers
Cameco Corporation's earnings per share (EPS) grew 99% per year over the last three years. It achieved revenue growth of 17% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Cameco Corporation Been A Good Investment?
We think that the total shareholder return of 202%, over three years, would leave most Cameco Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Cameco that investors should look into moving forward.
Important note: Cameco 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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
