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Does Inca One Gold Corp.’s (CVE:IO) CEO Salary Compare Well With Others?

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Ed Kelly has been the CEO of Inca One Gold Corp. (CVE:IO) since 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Inca One Gold

How Does Ed Kelly’s Compensation Compare With Similar Sized Companies?

According to our data, Inca One Gold Corp. has a market capitalization of CA$12m, and pays its CEO total annual compensation worth US$362k. (This is based on the year to 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$180k. We examined a group of similar sized companies, with market capitalizations of below CA$265m. The median CEO compensation in that group is CA$157k.

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It would therefore appear that Inca One Gold Corp. pays Ed Kelly 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 better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at Inca One Gold has changed over time.

TSXV:IO CEO Compensation February 14th 19
TSXV:IO CEO Compensation February 14th 19

Is Inca One Gold Corp. Growing?

On average over the last three years, Inca One Gold Corp. has grown earnings per share (EPS) by 96% each year (using a line of best fit). Its revenue is up 48% over last year.

This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Inca One Gold Corp. Been A Good Investment?

Given the total loss of 93% over three years, many shareholders in Inca One Gold Corp. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary…

We compared total CEO remuneration at Inca One Gold Corp. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. Whatever your view on compensation, you might want to check if insiders are buying or selling Inca One Gold shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.