We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Copper Mountain Mining Corporation's (TSE:CMMC) CEO For Now

By
Simply Wall St
Published
June 04, 2021
TSX:CMMC
Source: Shutterstock

Under the guidance of CEO Gil Clausen, Copper Mountain Mining Corporation (TSE:CMMC) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 10 June 2021. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Copper Mountain Mining

Comparing Copper Mountain Mining Corporation's CEO Compensation With the industry

According to our data, Copper Mountain Mining Corporation has a market capitalization of CA$878m, and paid its CEO total annual compensation worth CA$2.3m over the year to December 2020. Notably, that's an increase of 32% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$664k.

For comparison, other companies in the same industry with market capitalizations ranging between CA$484m and CA$1.9b had a median total CEO compensation of CA$1.3m. This suggests that Gil Clausen is paid more than the median for the industry. Moreover, Gil Clausen also holds CA$17m worth of Copper Mountain Mining stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20202019Proportion (2020)
Salary CA$664k CA$649k 29%
Other CA$1.6m CA$1.1m 71%
Total CompensationCA$2.3m CA$1.8m100%

On an industry level, roughly 93% of total compensation represents salary and 7% is other remuneration. Copper Mountain Mining 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.

ceo-compensation
TSX:CMMC CEO Compensation June 5th 2021

A Look at Copper Mountain Mining Corporation's Growth Numbers

Copper Mountain Mining Corporation has seen its earnings per share (EPS) increase by 23% a year over the past three years. It achieved revenue growth of 81% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Copper Mountain Mining Corporation Been A Good Investment?

We think that the total shareholder return of 210%, over three years, would leave most Copper Mountain Mining Corporation shareholders smiling. 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...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 4 warning signs for Copper Mountain Mining that investors should look into moving forward.

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.

If you're looking for stocks to buy, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted


Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.