In 2015 David Cates was appointed CEO of Denison Mines Corp (TSE:DML). 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.
How Does David Cates’s Compensation Compare With Similar Sized Companies?
Our data indicates that Denison Mines Corp is worth CA$391m, and total annual CEO compensation is CA$838k. We note that’s an increase of 80% above last year. We looked at a group of companies with market capitalizations from CA$131m to CA$524m, and the median CEO compensation was CA$848k.
So David Cates is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Denison Mines has changed from year to year.
Is Denison Mines Corp Growing?
On average over the last three years, Denison Mines Corp has grown earnings per share (EPS) by 2.7% each year. It saw its revenue drop -13% over the last year.
I would prefer it if there was revenue growth, but I’m happy with the EPS growth. 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 Denison Mines Corp Been A Good Investment?
Denison Mines Corp has generated a total shareholder return of 23% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
David Cates is paid around the same as most CEOs of similar size companies.
We see room for improved growth, as well as fairly unremarkable returns over the last three years. While the CEO may not be underpaid, we don’t think the pay is too generous either. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Denison Mines Corp.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
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 firstname.lastname@example.org.