It Looks Like Barrick Gold Corporation's (TSE:ABX) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Barrick Gold to hold its Annual General Meeting on 30th of April
• Salary of US$1.80m is part of CEO Dennis Bristow's total remuneration
• The overall pay is 149% above the industry average
• Over the past three years, Barrick Gold's EPS fell by 18% and over the past three years, the total loss to shareholders 6.7%

Shareholders will probably not be too impressed with the underwhelming results at Barrick Gold Corporation (TSE:ABX) recently. At the upcoming AGM on 30th of April, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for Barrick Gold

Comparing Barrick Gold Corporation's CEO Compensation With The Industry

At the time of writing, our data shows that Barrick Gold Corporation has a market capitalization of CA$40b, and reported total annual CEO compensation of US$13m for the year to December 2023. We note that's a small decrease of 4.7% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$1.8m.

For comparison, other companies in the Canadian Metals and Mining industry with market capitalizations above CA$11b, reported a median total CEO compensation of US$5.1m. Hence, we can conclude that Dennis Bristow is remunerated higher than the industry median. Moreover, Dennis Bristow also holds CA$143m worth of Barrick Gold 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$1.8m	US$1.8m	14%
Other	US$11m	US$12m	86%
Total Compensation	US$13m	US$13m	100%

On an industry level, roughly 94% of total compensation represents salary and 6% is other remuneration. Barrick Gold sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Barrick Gold Corporation's Growth

Over the last three years, Barrick Gold Corporation has shrunk its earnings per share by 18% per year. In the last year, its revenue is up 3.5%.

Overall this is not a very positive result for shareholders. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Barrick Gold Corporation Been A Good Investment?

Given the total shareholder loss of 6.7% over three years, many shareholders in Barrick Gold Corporation are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Barrick Gold that investors should look into moving forward.

Switching gears from Barrick Gold, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.