GoGold Resources Inc.'s (TSE:GGD) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• GoGold Resources' Annual General Meeting to take place on 27th of March
• Total pay for CEO Brad Langille includes US$143.2k salary
• The total compensation is 88% higher than the average for the industry
• GoGold Resources' EPS declined by 24% over the past three years while total shareholder loss over the past three years was 41%

Shareholders of GoGold Resources Inc. (TSE:GGD) will have been dismayed by the negative share price return over the last three years. In addition, the company's per-share earnings growth is not looking good, despite growing revenues. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 27th of March, where they can impact on future company performance by voting on resolutions, including executive compensation. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.

View our latest analysis for GoGold Resources

How Does Total Compensation For Brad Langille Compare With Other Companies In The Industry?

At the time of writing, our data shows that GoGold Resources Inc. has a market capitalization of CA$649m, and reported total annual CEO compensation of US$1.5m for the year to September 2024. That's a modest increase of 4.5% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$143k.

On comparing similar companies from the Canadian Metals and Mining industry with market caps ranging from CA$286m to CA$1.1b, we found that the median CEO total compensation was US$818k. Accordingly, our analysis reveals that GoGold Resources Inc. pays Brad Langille north of the industry median. Furthermore, Brad Langille directly owns CA$29m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	US$143k	US$134k	9%
Other	US$1.4m	US$1.3m	91%
Total Compensation	US$1.5m	US$1.5m	100%

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

A Look at GoGold Resources Inc.'s Growth Numbers

GoGold Resources Inc. has reduced its earnings per share by 24% a year over the last three years. In the last year, its revenue is up 71%.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has GoGold Resources Inc. Been A Good Investment?

With a total shareholder return of -41% over three years, GoGold Resources Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their expectations.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for GoGold Resources that investors should think about before committing capital to this stock.

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.

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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.