It's Unlikely That Shareholders Will Increase Orla Mining Ltd.'s (TSE:OLA) Compensation By Much This Year

Key Insights

• Orla Mining to hold its Annual General Meeting on 20th of June
• Total pay for CEO Jason Simpson includes US$471.7k salary
• The overall pay is comparable to the industry average
• Orla Mining's total shareholder return over the past three years was 3.5% while its EPS grew by 59% over the past three years

Under the guidance of CEO Jason Simpson, Orla Mining Ltd. (TSE:OLA) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 20th of June. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for Orla Mining

How Does Total Compensation For Jason Simpson Compare With Other Companies In The Industry?

Our data indicates that Orla Mining Ltd. has a market capitalization of CA$1.7b, and total annual CEO compensation was reported as US$1.9m for the year to December 2023. That's a notable increase of 20% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$472k.

On examining similar-sized companies in the Canadian Metals and Mining industry with market capitalizations between CA$1.4b and CA$4.4b, we discovered that the median CEO total compensation of that group was US$2.4m. This suggests that Orla Mining remunerates its CEO largely in line with the industry average. What's more, Jason Simpson holds CA$10m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$472k	US$388k	25%
Other	US$1.4m	US$1.2m	75%
Total Compensation	US$1.9m	US$1.6m	100%

On an industry level, around 94% of total compensation represents salary and 6% is other remuneration. It's interesting to note that Orla Mining allocates a smaller portion of compensation to salary 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.

Orla Mining Ltd.'s Growth

Orla Mining Ltd. has seen its earnings per share (EPS) increase by 59% a year over the past three years. It achieved revenue growth of 22% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Orla Mining Ltd. Been A Good Investment?

Orla Mining Ltd. has generated a total shareholder return of 3.5% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

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 Orla Mining that you should be aware of before investing.

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.

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