Most Shareholders Will Probably Find That The Compensation For Aura Minerals Inc.'s (TSE:ORA) CEO Is Reasonable

Key Insights

• Aura Minerals will host its Annual General Meeting on 20th of June
• Salary of US$636.0k is part of CEO Rodrigo Barbosa's total remuneration
• Total compensation is 36% below industry average
• Aura Minerals' three-year loss to shareholders was 14% while its EPS was down 67% over the past three years

The performance at Aura Minerals Inc. (TSE:ORA) has been rather lacklustre of late and shareholders may be wondering what CEO Rodrigo Barbosa is planning to do about this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 20th of June. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We think CEO compensation looks appropriate given the data we have put together.

See our latest analysis for Aura Minerals

Comparing Aura Minerals Inc.'s CEO Compensation With The Industry

Our data indicates that Aura Minerals Inc. has a market capitalization of CA$889m, and total annual CEO compensation was reported as US$1.2m for the year to December 2023. We note that's a small decrease of 4.8% on last year. In particular, the salary of US$636.0k, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the Canadian Metals and Mining industry with market capitalizations ranging between CA$549m and CA$2.2b had a median total CEO compensation of US$1.9m. That is to say, Rodrigo Barbosa is paid under the industry median.

Component	2023	2022	Proportion (2023)
Salary	US$636k	US$563k	53%
Other	US$572k	US$706k	47%
Total Compensation	US$1.2m	US$1.3m	100%

On an industry level, roughly 94% of total compensation represents salary and 6% 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. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Aura Minerals Inc.'s Growth

Aura Minerals Inc. has reduced its earnings per share by 67% a year over the last three years. In the last year, its revenue is up 20%.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Aura Minerals Inc. Been A Good Investment?

Given the total shareholder loss of 14% over three years, many shareholders in Aura Minerals Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The lack of share price growth will be weighing on shareholders' minds as they go into the AGM. This may have to do with the lack of earnings growth at the company, which may explain the lacklustre returns. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Aura Minerals (1 is significant!) that you should be aware of before investing here.

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.

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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.