Key Insights
- Lundin Gold to hold its Annual General Meeting on 9th of May
- CEO Ron Hochstein's total compensation includes salary of US$550.4k
- The total compensation is 57% less than the average for the industry
- Over the past three years, Lundin Gold's EPS grew by 23% and over the past three years, the total shareholder return was 497%
Shareholders will be pleased by the impressive results for Lundin Gold Inc. (TSE:LUG) recently and CEO Ron Hochstein has played a key role. At the upcoming AGM on 9th of May, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.
View our latest analysis for Lundin Gold
Comparing Lundin Gold Inc.'s CEO Compensation With The Industry
Our data indicates that Lundin Gold Inc. has a market capitalization of CA$14b, and total annual CEO compensation was reported as US$2.2m for the year to December 2024. That's slightly lower by 6.3% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$550k.
On comparing similar companies in the Canadian Metals and Mining industry with market capitalizations above CA$11b, we found that the median total CEO compensation was US$5.2m. This suggests that Ron Hochstein is paid below the industry median. What's more, Ron Hochstein holds CA$49m 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$550k | US$555k | 25% |
| Other | US$1.7m | US$1.8m | 75% |
| Total Compensation | US$2.2m | US$2.4m | 100% |
On an industry level, around 94% of total compensation represents salary and 6% is other remuneration. In Lundin Gold's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Lundin Gold Inc.'s Growth
Lundin Gold Inc. has seen its earnings per share (EPS) increase by 23% a year over the past three years. Its revenue is up 32% over the last year.
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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Lundin Gold Inc. Been A Good Investment?
Most shareholders would probably be pleased with Lundin Gold Inc. for providing a total return of 497% 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.
To Conclude...
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. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term 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 2 warning signs for Lundin Gold 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.
Valuation is complex, but we're here to simplify it.
Discover if Lundin Gold might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.