It Looks Like Shareholders Would Probably Approve Hudbay Minerals Inc.'s (TSE:HBM) CEO Compensation Package

Key Insights

• Hudbay Minerals will host its Annual General Meeting on 20th of May
• Salary of US$707.4k is part of CEO Peter Gerald Kukielski's total remuneration
• The total compensation is similar to the average for the industry
• Hudbay Minerals' total shareholder return over the past three years was 69% while its EPS grew by 77% over the past three years

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We have been pretty impressed with the performance at Hudbay Minerals Inc. (TSE:HBM) recently and CEO Peter Gerald Kukielski deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 20th of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for Hudbay Minerals

How Does Total Compensation For Peter Gerald Kukielski Compare With Other Companies In The Industry?

According to our data, Hudbay Minerals Inc. has a market capitalization of CA$4.2b, and paid its CEO total annual compensation worth US$3.9m over the year to December 2024. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$707k.

On comparing similar companies from the Canadian Metals and Mining industry with market caps ranging from CA$2.8b to CA$9.0b, we found that the median CEO total compensation was US$3.1m. From this we gather that Peter Gerald Kukielski is paid around the median for CEOs in the industry. What's more, Peter Gerald Kukielski holds CA$1.3m worth of shares in the company in their own name.

Component	2024	2023	Proportion (2024)
Salary	US$707k	US$738k	18%
Other	US$3.2m	US$3.2m	82%
Total Compensation	US$3.9m	US$3.9m	100%

On an industry level, roughly 94% of total compensation represents salary and 6% is other remuneration. In Hudbay Minerals' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Hudbay Minerals Inc.'s Growth

Hudbay Minerals Inc. has seen its earnings per share (EPS) increase by 77% a year over the past three years. It achieved revenue growth of 20% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Hudbay Minerals Inc. Been A Good Investment?

Boasting a total shareholder return of 69% over three years, Hudbay Minerals Inc. 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.

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. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

Shareholders may want to check for free if Hudbay Minerals insiders are buying or selling shares.

Important note: Hudbay Minerals is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.