Yahoo Finance Aura Minerals Inc.'s (TSE:ORA) CEO Compensation Looks Acceptable To Us And Here's Why
Key Insights
Aura Minerals' Annual General Meeting to take place on 20th of June
Salary of US$636.0k is part of CEO Rodrigo Barbosa's total remuneration
The overall pay is 36% below the industry average
Aura Minerals' three-year loss to shareholders was 14% while its EPS was down 67% over the past three years
Performance at Aura Minerals Inc. (TSE:ORA) has been rather uninspiring recently and shareholders may be wondering how CEO Rodrigo Barbosa plans to fix this. At the next AGM coming up on 20th of June, they can influence managerial decision making through voting on resolutions, including executive remuneration. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. In our opinion, CEO compensation does not look excessive and we discuss why.
View our latest analysis for Aura Minerals
Comparing Aura Minerals Inc.'s CEO Compensation With The Industry
Our data indicates that Aura Minerals Inc. has a market capitalization of CA$889m, and total annual CEO compensation was reported as US$1.2m for the year to December 2023. That's slightly lower by 4.8% over the previous year. Notably, the salary which is US$636.0k, represents a considerable chunk of the total compensation being paid.
On examining similar-sized companies in the Canadian Metals and Mining industry with market capitalizations between CA$549m and CA$2.2b, we discovered that the median CEO total compensation of that group was US$1.9m. This suggests that Rodrigo Barbosa is paid below the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$636k | US$563k | 53% |
Other | US$572k | US$706k | 47% |
Total Compensation | US$1.2m | US$1.3m | 100% |
Speaking on an industry level, nearly 94% of total compensation represents salary, while the remainder of 6% is other remuneration. Aura Minerals pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Aura Minerals Inc.'s Growth Numbers
Aura Minerals Inc. has reduced its earnings per share by 67% a year over the last three years. Its revenue is up 20% over the last year.
Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Aura Minerals Inc. Been A Good Investment?
Given the total shareholder loss of 14% over three years, many shareholders in Aura Minerals Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
The lack of share price growth will be weighing on shareholders' minds as they go into the AGM. It may be to do with the fact that earnings have not grown at all in the last few years. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board and assess if the board's plan is likely to improve company performance.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 3 warning signs for Aura Minerals you should be aware of, and 1 of them shouldn't be ignored.
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.
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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.
