Darren Pylot became the CEO of Capstone Mining Corp. (TSE:CS) in 1995. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Capstone Mining
How Does Darren Pylot's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Capstone Mining Corp. has a market cap of CA$160m, and reported total annual CEO compensation of CA$2.9m for the year to December 2019. That's below the compensation, last year. We think total compensation is more important but we note that the CEO salary is lower, at CA$702k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations under CA$281m, and the median CEO total compensation was CA$222k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Capstone Mining stands. On a sector level, around 92% of total compensation represents salary and 7.6% is other remuneration. Non-salary compensation represents a greater slice of the remuneration pie for Capstone Mining, in sharp contrast to the overall sector.
As you can see, Darren Pylot is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Capstone Mining Corp. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance. You can see a visual representation of the CEO compensation at Capstone Mining, below.
Is Capstone Mining Corp. Growing?
Capstone Mining Corp. has seen earnings per share (EPS) move positively by an average of 81% a year, over the last three years (using a line of best fit). Revenue was pretty flat on last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. You might want to check this free visual report on analyst forecasts for future earnings.
Has Capstone Mining Corp. Been A Good Investment?
Given the total loss of 72% over three years, many shareholders in Capstone Mining Corp. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared the total CEO remuneration paid by Capstone Mining Corp., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. While EPS is moving in the right direction, we'd say shareholders would want better returns before the CEO is paid much more. Moving away from CEO compensation for the moment, we've identified 1 warning sign for Capstone Mining that you should be aware of before investing.
Important note: Capstone Mining may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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