In 1997 Brian Dalton was appointed CEO of Altius Minerals Corporation (TSE:ALS). 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 – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
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How Does Brian Dalton’s Compensation Compare With Similar Sized Companies?
According to our data, Altius Minerals Corporation has a market capitalization of CA$540m, and pays its CEO total annual compensation worth CA$1.4m. (This figure is for the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CA$450k. We looked at a group of companies with market capitalizations from CA$269m to CA$1.1b, and the median CEO total compensation was CA$1.4m.
So Brian Dalton receives a similar amount to the median CEO pay, amongst 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.
You can see, below, how CEO compensation at Altius Minerals has changed over time.
Is Altius Minerals Corporation Growing?
Over the last three years Altius Minerals Corporation has grown its earnings per share (EPS) by an average of 51% per year (using a line of best fit). Its revenue is up 23% over last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.
Has Altius Minerals Corporation Been A Good Investment?
Altius Minerals Corporation has generated a total shareholder return of 25% over three years, so most shareholders would be reasonably content. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Brian Dalton is paid around what is normal the leaders of comparable size companies.
The company is growing EPS but shareholder returns have been sound but not amazing. As a result of these considerations, I would suggest the CEO pay is reasonable. So you may want to check if insiders are buying Altius Minerals shares with their own money (free access).
If you want to buy a stock that is better than Altius Minerals, this free list of high return, low debt companies is a great place to look.
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