Here's Why Shareholders May Want To Be Cautious With Increasing Excelsior Mining Corp.'s (TSE:MIN) CEO Pay Packet

Key Insights

• Excelsior Mining's Annual General Meeting to take place on 20th of June
• Total pay for CEO Stephen Twyerould includes US$409.3k salary
• Total compensation is 275% above industry average
• Excelsior Mining's three-year loss to shareholders was 72% while its EPS grew by 44% over the past three years

The underwhelming share price performance of Excelsior Mining Corp. (TSE:MIN) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 20th of June. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for Excelsior Mining

How Does Total Compensation For Stephen Twyerould Compare With Other Companies In The Industry?

According to our data, Excelsior Mining Corp. has a market capitalization of CA$52m, and paid its CEO total annual compensation worth US$523k over the year to December 2023. We note that's an increase of 22% above last year. Notably, the salary which is US$409.3k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Canadian Metals and Mining industry with market capitalizations below CA$275m, we found that the median total CEO compensation was US$140k. Hence, we can conclude that Stephen Twyerould is remunerated higher than the industry median. Moreover, Stephen Twyerould also holds CA$1.2m worth of Excelsior Mining stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$409k	US$410k	78%
Other	US$114k	US$20k	22%
Total Compensation	US$523k	US$430k	100%

On an industry level, around 94% of total compensation represents salary and 6% is other remuneration. Excelsior Mining pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Excelsior Mining Corp.'s Growth

Over the past three years, Excelsior Mining Corp. has seen its earnings per share (EPS) grow by 44% per year. Its revenue is down 47% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Excelsior Mining Corp. Been A Good Investment?

The return of -72% over three years would not have pleased Excelsior Mining Corp. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 7 warning signs for Excelsior Mining (3 are a bit concerning!) that you should be aware of before investing here.

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.