Performance at Mandalay Resources Corporation (TSE:MND) has been reasonably good and CEO Dominic Duffy has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 26 May 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
How Does Total Compensation For Dominic Duffy Compare With Other Companies In The Industry?
At the time of writing, our data shows that Mandalay Resources Corporation has a market capitalization of CA$264m, and reported total annual CEO compensation of US$710k for the year to December 2020. That's mostly flat as compared to the prior year's compensation. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$325k.
In comparison with other companies in the industry with market capitalizations ranging from CA$121m to CA$484m, the reported median CEO total compensation was US$390k. Hence, we can conclude that Dominic Duffy is remunerated higher than the industry median. Moreover, Dominic Duffy also holds CA$131k worth of Mandalay Resources stock directly under their own name.
On an industry level, around 95% of total compensation represents salary and 5% is other remuneration. Mandalay Resources sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Mandalay Resources Corporation's Growth Numbers
Mandalay Resources Corporation has seen its earnings per share (EPS) increase by 83% a year over the past three years. In the last year, its revenue is up 59%.
This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Mandalay Resources Corporation Been A Good Investment?
We think that the total shareholder return of 45%, over three years, would leave most Mandalay Resources Corporation shareholders smiling. 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.
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
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. That's why we did some digging and identified 1 warning sign for Mandalay Resources that you should be aware of before investing.
Important note: Mandalay Resources 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.
If you’re looking to trade a wide range of investments, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade 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.