Increases to CEO Compensation Might Be Put On Hold For Now at Aura Minerals Inc. (TSE:ORA)

Performance at Aura Minerals Inc. (TSE:ORA) has been reasonably good and CEO Rodrigo Barbosa has done a decent job of steering the company in the right direction. 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 29 June 2021. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Aura Minerals

How Does Total Compensation For Rodrigo Barbosa Compare With Other Companies In The Industry?

At the time of writing, our data shows that Aura Minerals Inc. has a market capitalization of CA$1.2b, and reported total annual CEO compensation of US$1.8m for the year to December 2020. That's a notable increase of 88% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$433k.

For comparison, other companies in the same industry with market capitalizations ranging between CA$495m and CA$2.0b had a median total CEO compensation of US$1.1m. Accordingly, our analysis reveals that Aura Minerals Inc. pays Rodrigo Barbosa north of the industry median. What's more, Rodrigo Barbosa holds CA$14m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	US$433k	US$350k	24%
Other	US$1.4m	US$628k	76%
Total Compensation	US$1.8m	US$978k	100%

Speaking on an industry level, nearly 92% of total compensation represents salary, while the remainder of 8% is other remuneration. It's interesting to note that Aura Minerals 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.

A Look at Aura Minerals Inc.'s Growth Numbers

Over the past three years, Aura Minerals Inc. has seen its earnings per share (EPS) grow by 41% per year. It achieved revenue growth of 54% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Aura Minerals Inc. Been A Good Investment?

Most shareholders would probably be pleased with Aura Minerals Inc. for providing a total return of 1,231% over three years. 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.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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. We've identified 4 warning signs for Aura Minerals that investors should be aware of in a dynamic business environment.

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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