Increases to First Majestic Silver Corp.'s (TSE:AG) CEO Compensation Might Cool off for now

Key Insights

• First Majestic Silver's Annual General Meeting to take place on 20th of May
• Salary of US$1.26m is part of CEO Keith Neumeyer's total remuneration
• The total compensation is 75% higher than the average for the industry
• Over the past three years, First Majestic Silver's EPS grew by 6.0% and over the past three years, the total loss to shareholders 21%

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The underwhelming share price performance of First Majestic Silver Corp. (TSE:AG) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 20th of May. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for First Majestic Silver

Comparing First Majestic Silver Corp.'s CEO Compensation With The Industry

According to our data, First Majestic Silver Corp. has a market capitalization of CA$4.0b, and paid its CEO total annual compensation worth US$5.4m over the year to December 2024. We note that's an increase of 12% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$1.3m.

On examining similar-sized companies in the Canadian Metals and Mining industry with market capitalizations between CA$2.8b and CA$9.0b, we discovered that the median CEO total compensation of that group was US$3.1m. Accordingly, our analysis reveals that First Majestic Silver Corp. pays Keith Neumeyer north of the industry median. Moreover, Keith Neumeyer also holds CA$35m worth of First Majestic Silver stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 94% of total compensation represents salary and 6% is other remuneration. First Majestic Silver 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.

First Majestic Silver Corp.'s Growth

First Majestic Silver Corp.'s earnings per share (EPS) grew 6.0% per year over the last three years. It achieved revenue growth of 34% over the last year.

It's hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn't shabby. We'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. 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 First Majestic Silver Corp. Been A Good Investment?

Given the total shareholder loss of 21% over three years, many shareholders in First Majestic Silver Corp. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders 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 a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 1 warning sign for First Majestic Silver that investors should look into moving forward.

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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.