Yahoo Finance Why Alacer Gold Corp.'s (TSE:ASR) CEO Pay Matters To You
In 2013 Rod Antal was appointed CEO of Alacer Gold Corp. (TSE:ASR). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
Check out our latest analysis for Alacer Gold
How Does Rod Antal's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Alacer Gold Corp. has a market cap of CA$1.9b, and reported total annual CEO compensation of US$3.4m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$673k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$2.1m.
Thus we can conclude that Rod Antal receives more in total compensation than the median of a group of companies in the same market, and of similar size to Alacer Gold Corp.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Alacer Gold has changed from year to year.
Is Alacer Gold Corp. Growing?
Alacer Gold Corp. has increased its earnings per share (EPS) by an average of 27% a year, over the last three years (using a line of best fit). Its revenue is up 150% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.
Has Alacer Gold Corp. Been A Good Investment?
Most shareholders would probably be pleased with Alacer Gold Corp. for providing a total return of 156% 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 compared the total CEO remuneration paid by Alacer Gold Corp., 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.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Alacer Gold (free visualization of insider trades).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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.
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. Thank you for reading.
