Key Insights
- Alamos Gold's Annual General Meeting to take place on 29th of May
- Salary of US$785.0k is part of CEO John McCluskey's total remuneration
- The overall pay is comparable to the industry average
- Alamos Gold's EPS grew by 68% over the past three years while total shareholder return over the past three years was 280%
We have been pretty impressed with the performance at Alamos Gold Inc. (TSE:AGI) recently and CEO John McCluskey deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 29th of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
Check out our latest analysis for Alamos Gold
How Does Total Compensation For John McCluskey Compare With Other Companies In The Industry?
At the time of writing, our data shows that Alamos Gold Inc. has a market capitalization of CA$15b, and reported total annual CEO compensation of US$4.7m for the year to December 2024. That's a notable increase of 10% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$785k.
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$4.7m. So it looks like Alamos Gold compensates John McCluskey in line with the median for the industry. Moreover, John McCluskey also holds CA$36m worth of Alamos Gold stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | US$785k | US$756k | 17% |
| Other | US$3.9m | US$3.5m | 83% |
| Total Compensation | US$4.7m | US$4.3m | 100% |
On an industry level, around 95% of total compensation represents salary and 5% is other remuneration. Alamos 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.
A Look at Alamos Gold Inc.'s Growth Numbers
Alamos Gold Inc.'s earnings per share (EPS) grew 68% per year over the last three years. Its revenue is up 34% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Alamos Gold Inc. Been A Good Investment?
Most shareholders would probably be pleased with Alamos Gold Inc. for providing a total return of 280% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Alamos Gold.
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.
Valuation is complex, but we're here to simplify it.
Discover if Alamos Gold might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.