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Ewan Downie became the CEO of Premier Gold Mines Limited (TSE:PG) in 2006. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Ewan Downie’s Compensation Compare With Similar Sized Companies?
According to our data, Premier Gold Mines Limited has a market capitalization of CA$398m, and pays its CEO total annual compensation worth US$1.8m. (This number is for the twelve months until December 2018). That’s below the compensation, last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$525k. We examined companies with market caps from CA$134m to CA$536m, and discovered that the median CEO total compensation of that group was CA$902k.
As you can see, Ewan Downie is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Premier Gold Mines Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Premier Gold Mines has changed over time.
Is Premier Gold Mines Limited Growing?
Premier Gold Mines Limited has increased its earnings per share (EPS) by an average of 1.9% a year, over the last three years (using a line of best fit). Its revenue is down -44% over last year.
I generally like to see a little revenue growth, but it is good to see EPS growth. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has Premier Gold Mines Limited Been A Good Investment?
With a three year total loss of 43%, Premier Gold Mines Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We compared total CEO remuneration at Premier Gold Mines Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Shareholders may wish to consider further research. Although we don’t think the CEO pay is too high, it is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling Premier Gold Mines shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.