It Looks Like Shareholders Would Probably Approve Eldorado Gold Corporation's (TSE:ELD) CEO Compensation Package

Key Insights

• Eldorado Gold's Annual General Meeting to take place on 3rd of June
• Salary of US$737.9k is part of CEO George Burns's total remuneration
• Total compensation is similar to the industry average
• Eldorado Gold's EPS grew by 93% over the past three years while total shareholder return over the past three years was 163%

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We have been pretty impressed with the performance at Eldorado Gold Corporation (TSE:ELD) recently and CEO George Burns deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 3rd of June. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Eldorado Gold

How Does Total Compensation For George Burns Compare With Other Companies In The Industry?

According to our data, Eldorado Gold Corporation has a market capitalization of CA$5.6b, and paid its CEO total annual compensation worth US$3.6m over the year to December 2024. We note that's a small decrease of 7.5% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$738k.

On examining similar-sized companies in the Canadian Metals and Mining industry with market capitalizations between CA$2.7b and CA$8.8b, we discovered that the median CEO total compensation of that group was US$2.8m. So it looks like Eldorado Gold compensates George Burns in line with the median for the industry. Furthermore, George Burns directly owns CA$15m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 95% of total compensation out of all the companies we analyzed, while other remuneration made up 5% of the pie. Eldorado Gold sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Eldorado Gold Corporation's Growth Numbers

Over the past three years, Eldorado Gold Corporation has seen its earnings per share (EPS) grow by 93% per year. In the last year, its revenue is up 37%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Eldorado Gold Corporation Been A Good Investment?

Boasting a total shareholder return of 163% over three years, Eldorado Gold Corporation has done well by shareholders. 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...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Eldorado Gold that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.