Is Hudbay Minerals Inc.'s (TSE:HBM) CEO Paid Enough Relative To Peers?

Simply Wall St
May 17, 2019

In 2016 Alan T. Hair was appointed CEO of Hudbay Minerals Inc. (TSE:HBM). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

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See our latest analysis for Hudbay Minerals

How Does Alan T. Hair's Compensation Compare With Similar Sized Companies?

According to our data, Hudbay Minerals Inc. has a market capitalization of CA$1.8b, and pays its CEO total annual compensation worth US$4.0m. (This is based on the year to December 2018). That's less than last year. We think total compensation is more important but we note that the CEO salary is lower, at US$820k. We examined companies with market caps from CA$1.3b to CA$4.3b, and discovered that the median CEO total compensation of that group was CA$3.2m.

So Alan T. Hair is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Hudbay Minerals has changed over time.

TSX:HBM CEO Compensation, May 17th 2019
TSX:HBM CEO Compensation, May 17th 2019

Is Hudbay Minerals Inc. Growing?

On average over the last three years, Hudbay Minerals Inc. has grown earnings per share (EPS) by 114% each year (using a line of best fit). Its revenue is down -9.8% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. Shareholders might be interested in this free visualization of analyst forecasts.

Has Hudbay Minerals Inc. Been A Good Investment?

Most shareholders would probably be pleased with Hudbay Minerals Inc. for providing a total return of 35% 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...

Remuneration for Alan T. Hair is close enough to the median pay for a CEO of a similar sized company .

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Whatever your view on compensation, you might want to check if insiders are buying or selling Hudbay Minerals shares (free trial).

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at 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. Thank you for reading.

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