We Take A Look At Why Maverix Metals Inc.'s (TSE:MMX) CEO Has Earned Their Pay Packet

We have been pretty impressed with the performance at Maverix Metals Inc. (TSE:MMX) recently and CEO Dan O'Flaherty deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 13 May 2021. 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. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for Maverix Metals

Comparing Maverix Metals Inc.'s CEO Compensation With the industry

According to our data, Maverix Metals Inc. has a market capitalization of CA$994m, and paid its CEO total annual compensation worth US$1.2m over the year to December 2020. That's just a smallish increase of 4.0% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$369k.

For comparison, other companies in the same industry with market capitalizations ranging between CA$488m and CA$2.0b had a median total CEO compensation of US$1.1m. From this we gather that Dan O'Flaherty is paid around the median for CEOs in the industry. Furthermore, Dan O'Flaherty directly owns CA$23m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	US$369k	US$355k	31%
Other	US$819k	US$787k	69%
Total Compensation	US$1.2m	US$1.1m	100%

Talking in terms of the industry, salary represented approximately 94% of total compensation out of all the companies we analyzed, while other remuneration made up 6% of the pie. Maverix Metals sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Maverix Metals Inc.'s Growth Numbers

Over the past three years, Maverix Metals Inc. has seen its earnings per share (EPS) grow by 86% per year. In the last year, its revenue is up 53%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Maverix Metals Inc. Been A Good Investment?

Boasting a total shareholder return of 132% over three years, Maverix Metals Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Some shareholders will probably be more lenient on CEO compensation in the upcoming AGM given the pleasing performance of the company recently. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Maverix Metals that investors should be aware of in a dynamic business environment.

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.

When trading stocks or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.