Increases to Avino Silver & Gold Mines Ltd.'s (TSE:ASM) CEO Compensation Might Cool off for now

Key Insights

• Avino Silver & Gold Mines' Annual General Meeting to take place on 30th of May
• Salary of US$285.3k is part of CEO David Wolfin's total remuneration
• Total compensation is 470% above industry average
• Over the past three years, Avino Silver & Gold Mines' EPS grew by 100% and over the past three years, the total loss to shareholders 11%

As many shareholders of Avino Silver & Gold Mines Ltd. (TSE:ASM) will be aware, they have not made a gain on their investment in the past three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 30th of May could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. 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 Avino Silver & Gold Mines

How Does Total Compensation For David Wolfin Compare With Other Companies In The Industry?

Our data indicates that Avino Silver & Gold Mines Ltd. has a market capitalization of CA$184m, and total annual CEO compensation was reported as US$784k for the year to December 2023. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$285k.

On comparing similar-sized companies in the Canadian Metals and Mining industry with market capitalizations below CA$275m, we found that the median total CEO compensation was US$138k. This suggests that David Wolfin is paid more than the median for the industry. What's more, David Wolfin holds CA$4.6m 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	US$285k	US$269k	36%
Other	US$498k	US$530k	64%
Total Compensation	US$784k	US$799k	100%

On an industry level, around 93% of total compensation represents salary and 7% is other remuneration. It's interesting to note that Avino Silver & Gold Mines allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Avino Silver & Gold Mines Ltd.'s Growth Numbers

Avino Silver & Gold Mines Ltd. has seen its earnings per share (EPS) increase by 100% a year over the past three years. It achieved revenue growth of 8.1% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Avino Silver & Gold Mines Ltd. Been A Good Investment?

With a three year total loss of 11% for the shareholders, Avino Silver & Gold Mines Ltd. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. 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. That's why we did some digging and identified 4 warning signs for Avino Silver & Gold Mines that investors should think about before committing capital to this stock.

Switching gears from Avino Silver & Gold Mines, 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.