Advertisement
Canada markets open in 6 hours 10 minutes
  • S&P/TSX

    21,871.96
    +64.59 (+0.30%)
     
  • S&P 500

    5,010.60
    +43.37 (+0.87%)
     
  • DOW

    38,239.98
    +253.58 (+0.67%)
     
  • CAD/USD

    0.7298
    -0.0003 (-0.04%)
     
  • CRUDE OIL

    83.02
    +0.17 (+0.21%)
     
  • Bitcoin CAD

    90,967.45
    +323.90 (+0.36%)
     
  • CMC Crypto 200

    1,399.29
    -15.47 (-1.09%)
     
  • GOLD FUTURES

    2,317.60
    -28.80 (-1.23%)
     
  • RUSSELL 2000

    1,967.47
    +19.82 (+1.02%)
     
  • 10-Yr Bond

    4.6230
    +0.0080 (+0.17%)
     
  • NASDAQ futures

    17,357.00
    +7.00 (+0.04%)
     
  • VOLATILITY

    16.94
    0.00 (0.00%)
     
  • FTSE

    8,066.18
    +42.31 (+0.53%)
     
  • NIKKEI 225

    37,552.16
    +113.55 (+0.30%)
     
  • CAD/EUR

    0.6848
    -0.0002 (-0.03%)
     

Should You Worry About Osisko Gold Royalties Ltd’s (TSE:OR) CEO Pay Check?

In 2014 Sean E. Roosen was appointed CEO of Osisko Gold Royalties Ltd (TSE:OR). 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. 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 Osisko Gold Royalties

How Does Sean E. Roosen’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Osisko Gold Royalties Ltd has a market cap of CA$1.7b, and is paying total annual CEO compensation of CA$3m. We note that’s an increase of 46% above last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$1.3b to CA$4.2b. The median total CEO compensation was CA$3m.

ADVERTISEMENT

So Sean E. Roosen is paid around the average of the companies we looked at. 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 Osisko Gold Royalties has changed from year to year.

TSX:OR CEO Compensation October 26th 18
TSX:OR CEO Compensation October 26th 18

Is Osisko Gold Royalties Ltd Growing?

Osisko Gold Royalties Ltd has reduced its earnings per share by an average of 60% a year, over the last three years. It achieved revenue growth of 561% over the 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.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has Osisko Gold Royalties Ltd Been A Good Investment?

With a three year total loss of 30%, Osisko Gold Royalties Ltd would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Sean E. Roosen is paid around the same as most CEOs of similar size companies.

The per share growth could be better, in our view. And shareholder returns have been disappointing over the last three years. This contrasts with the growth in CEO remuneration. So suffice it to say we don’t think the compensation is modest! Shareholders may want to check for free if Osisko Gold Royalties Ltd insiders are buying or selling shares.

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.