We Take A Look At Why Dundee Precious Metals Inc.'s (TSE:DPM) CEO Compensation Is Well Earned

Key Insights

• Dundee Precious Metals will host its Annual General Meeting on 7th of May
• Salary of US$591.2k is part of CEO David Rae's total remuneration
• The total compensation is similar to the average for the industry
• Dundee Precious Metals' EPS grew by 12% over the past three years while total shareholder return over the past three years was 163%

We've discovered 1 warning sign about Dundee Precious Metals. View them for free.

The performance at Dundee Precious Metals Inc. (TSE:DPM) has been quite strong recently and CEO David Rae has played a role in it. Coming up to the next AGM on 7th of May, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Dundee Precious Metals

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

At the time of writing, our data shows that Dundee Precious Metals Inc. has a market capitalization of CA$3.1b, and reported total annual CEO compensation of US$2.8m for the year to December 2024. That's a fairly small increase of 4.3% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$591k.

On examining similar-sized companies in the Canadian Metals and Mining industry with market capitalizations between CA$1.4b and CA$4.4b, we discovered that the median CEO total compensation of that group was US$2.2m. So it looks like Dundee Precious Metals compensates David Rae in line with the median for the industry. Furthermore, David Rae directly owns CA$4.0m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$591k	US$589k	21%
Other	US$2.2m	US$2.1m	79%
Total Compensation	US$2.8m	US$2.7m	100%

Speaking on an industry level, nearly 95% of total compensation represents salary, while the remainder of 5% is other remuneration. Dundee Precious Metals 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.

Dundee Precious Metals Inc.'s Growth

Dundee Precious Metals Inc. has seen its earnings per share (EPS) increase by 12% a year over the past three years. Its revenue is up 17% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Dundee Precious Metals Inc. Been A Good Investment?

Most shareholders would probably be pleased with Dundee Precious Metals Inc. for providing a total return of 163% 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.

In Summary...

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. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Dundee Precious Metals that investors should be aware of in a dynamic business environment.

Switching gears from Dundee Precious Metals, 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.