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In 2010 Paddy Nicol was appointed CEO of Evrim Resources Corp. (CVE:EVM). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
How Does Paddy Nicol’s Compensation Compare With Similar Sized Companies?
According to our data, Evrim Resources Corp. has a market capitalization of CA$25m, and pays its CEO total annual compensation worth CA$340k. (This number is for the twelve months until December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CA$220k. We took a group of companies with market capitalizations below CA$261m, and calculated the median CEO total compensation to be CA$120k.
Thus we can conclude that Paddy Nicol receives more in total compensation than the median of a group of companies in the same market, and of similar size to Evrim Resources 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.
You can see, below, how CEO compensation at Evrim Resources has changed over time.
Is Evrim Resources Corp. Growing?
On average over the last three years, Evrim Resources Corp. has grown earnings per share (EPS) by 4.9% each year (using a line of best fit). Its revenue is up 336% over last year.
It’s hard to interpret the strong revenue growth as anything other than a positive. Combined with modest EPS growth, we get a good impression of the company. I’d stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list.
Has Evrim Resources Corp. Been A Good Investment?
Since shareholders would have lost about 1.7% over three years, some Evrim Resources Corp. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We compared the total CEO remuneration paid by Evrim Resources Corp., and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Shareholders may wish to consider further research. Although we don’t think the CEO pay is too high, it is probably more on the generous side of things. So you may want to check if insiders are buying Evrim Resources shares with their own money (free access).
Important note: Evrim Resources may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.