Shareholders May Not Be So Generous With Orvana Minerals Corp.'s (TSE:ORV) CEO Compensation And Here's Why

Key Insights

• Orvana Minerals will host its Annual General Meeting on 14th of February
• Salary of US$376.9k is part of CEO Juan Gavidia's total remuneration
• Total compensation is 647% above industry average
• Over the past three years, Orvana Minerals' EPS grew by 13% and over the past three years, the total loss to shareholders 33%

In the past three years, the share price of Orvana Minerals Corp. (TSE:ORV) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 14th of February. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for Orvana Minerals

How Does Total Compensation For Juan Gavidia Compare With Other Companies In The Industry?

At the time of writing, our data shows that Orvana Minerals Corp. has a market capitalization of CA$40m, and reported total annual CEO compensation of US$1.0m for the year to September 2024. Notably, that's an increase of 49% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at US$377k.

In comparison with other companies in the Canadian Metals and Mining industry with market capitalizations under CA$286m, the reported median total CEO compensation was US$134k. This suggests that Juan Gavidia is paid more than the median for the industry. Furthermore, Juan Gavidia directly owns CA$772k worth of shares in the company.

Component	2024	2023	Proportion (2024)
Salary	US$377k	US$376k	38%
Other	US$625k	US$296k	62%
Total Compensation	US$1.0m	US$671k	100%

Talking in terms of the industry, salary represented approximately 95% of total compensation out of all the companies we analyzed, while other remuneration made up 5% of the pie. In Orvana Minerals' case, non-salary compensation represents a greater slice of total remuneration, 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 Orvana Minerals Corp.'s Growth Numbers

Orvana Minerals Corp.'s earnings per share (EPS) grew 13% per year over the last three years. Its revenue is down 8.9% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Orvana Minerals Corp. Been A Good Investment?

The return of -33% over three years would not have pleased Orvana Minerals Corp. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Orvana Minerals that investors should look into moving forward.

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.