Yahoo Finance Shareholders Will Probably Hold Off On Increasing Calibre Mining Corp.'s (TSE:CXB) CEO Compensation For The Time Being
Key Insights
Calibre Mining's Annual General Meeting to take place on 12th of June
CEO Darren Hall's total compensation includes salary of US$415.1k
Total compensation is similar to the industry average
Over the past three years, Calibre Mining's EPS fell by 26% and over the past three years, the total loss to shareholders 13%
In the past three years, shareholders of Calibre Mining Corp. (TSE:CXB) have seen a loss on their investment. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. Shareholders will have a chance to take their concerns to the board at the next AGM on 12th of June and vote on resolutions including executive compensation, which studies show may have an impact on company performance. Here's why we think shareholders should hold off on a raise for the CEO at the moment.
See our latest analysis for Calibre Mining
Comparing Calibre Mining Corp.'s CEO Compensation With The Industry
According to our data, Calibre Mining Corp. has a market capitalization of CA$1.6b, and paid its CEO total annual compensation worth US$2.1m over the year to December 2023. We note that's an increase of 34% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$415k.
On comparing similar companies from the Canadian Metals and Mining industry with market caps ranging from CA$547m to CA$2.2b, we found that the median CEO total compensation was US$1.8m. So it looks like Calibre Mining compensates Darren Hall in line with the median for the industry. Moreover, Darren Hall also holds CA$5.0m worth of Calibre Mining stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$415k | US$304k | 19% |
Other | US$1.7m | US$1.3m | 81% |
Total Compensation | US$2.1m | US$1.6m | 100% |
Talking in terms of the industry, salary represented approximately 94% of total compensation out of all the companies we analyzed, while other remuneration made up 6% of the pie. Calibre Mining pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Calibre Mining Corp.'s Growth
Over the last three years, Calibre Mining Corp. has shrunk its earnings per share by 26% per year. In the last year, its revenue is up 30%.
The reduction in EPS, 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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Calibre Mining Corp. Been A Good Investment?
Since shareholders would have lost about 13% over three years, some Calibre Mining Corp. investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. Shareholders will get the chance at the upcoming AGM to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
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. We did our research and identified 2 warning signs (and 1 which is a bit unpleasant) in Calibre Mining we think you should know about.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
