Shareholders Will Likely Find Franco-Nevada Corporation's (TSE:FNV) CEO Compensation Acceptable

Key Insights

• Franco-Nevada's Annual General Meeting to take place on 8th of May
• CEO Paul Brink's total compensation includes salary of US$646.9k
• The total compensation is 33% less than the average for the industry
• Franco-Nevada's EPS declined by 9.3% over the past three years while total shareholder return over the past three years was 22%

Our free stock report includes 1 warning sign investors should be aware of before investing in Franco-Nevada. Read for free now.

The performance at Franco-Nevada Corporation (TSE:FNV) has been rather lacklustre of late and shareholders may be wondering what CEO Paul Brink is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 8th of May. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Check out our latest analysis for Franco-Nevada

Comparing Franco-Nevada Corporation's CEO Compensation With The Industry

At the time of writing, our data shows that Franco-Nevada Corporation has a market capitalization of CA$46b, and reported total annual CEO compensation of US$3.5m for the year to December 2024. That's a fairly small increase of 7.2% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$647k.

In comparison with other companies in the Canadian Metals and Mining industry with market capitalizations over CA$11b, the reported median total CEO compensation was US$5.2m. In other words, Franco-Nevada pays its CEO lower than the industry median. What's more, Paul Brink holds CA$58m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	US$647k	US$679k	19%
Other	US$2.8m	US$2.6m	81%
Total Compensation	US$3.5m	US$3.2m	100%

On an industry level, roughly 94% of total compensation represents salary and 6% is other remuneration. Franco-Nevada 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 Franco-Nevada Corporation's Growth Numbers

Over the last three years, Franco-Nevada Corporation has shrunk its earnings per share by 9.3% per year. It saw its revenue drop 9.4% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Franco-Nevada Corporation Been A Good Investment?

Franco-Nevada Corporation has served shareholders reasonably well, with a total return of 22% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. Shareholders might want to question the board about these concerns, and revisit their investment thesis for the company.

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 Franco-Nevada that you should be aware of before investing.

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.