Trans Canada Gold Corp.'s (CVE:TTG) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Trans Canada Gold will host its Annual General Meeting on 18th of December
• Salary of CA$102.0k is part of CEO Tim Coupland's total remuneration
• The total compensation is 63% less than the average for the industry
• Over the past three years, Trans Canada Gold's EPS grew by 16% and over the past three years, the total loss to shareholders 78%

The performance at Trans Canada Gold Corp. (CVE:TTG) has been rather lacklustre of late and shareholders may be wondering what CEO Tim Coupland is planning to do about this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 18th of December. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

See our latest analysis for Trans Canada Gold

Comparing Trans Canada Gold Corp.'s CEO Compensation With The Industry

Our data indicates that Trans Canada Gold Corp. has a market capitalization of CA$1.8m, and total annual CEO compensation was reported as CA$102k for the year to June 2023. This was the same as last year. Notably, the salary of CA$102k is the entirety of the CEO compensation.

On comparing similar-sized companies in the Canadian Oil and Gas industry with market capitalizations below CA$271m, we found that the median total CEO compensation was CA$279k. That is to say, Tim Coupland is paid under the industry median. What's more, Tim Coupland holds CA$229k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	CA$102k	CA$102k	100%
Other	-	-	-
Total Compensation	CA$102k	CA$102k	100%

Speaking on an industry level, nearly 37% of total compensation represents salary, while the remainder of 63% is other remuneration. Speaking on a company level, Trans Canada Gold prefers to tread along a traditional path, disbursing all compensation through a salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Trans Canada Gold Corp.'s Growth

Trans Canada Gold Corp.'s earnings per share (EPS) grew 16% per year over the last three years. In the last year, its revenue is down 74%.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Trans Canada Gold Corp. Been A Good Investment?

Few Trans Canada Gold Corp. shareholders would feel satisfied with the return of -78% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Trans Canada Gold rewards its CEO solely through a salary, ignoring non-salary benefits completely. The loss to shareholders over the past three years is certainly concerning. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. A key focus for the board and management will be how to align the share price with fundamentals. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 6 warning signs for Trans Canada Gold you should be aware of, and 5 of them don't sit too well with us.

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.