In 2008 Nolan Watson was appointed CEO of Sandstorm Gold Ltd. (TSE:SSL). First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Nolan Watson’s Compensation Compare With Similar Sized Companies?
According to our data, Sandstorm Gold Ltd. has a market capitalization of CA$1.2b, and pays its CEO total annual compensation worth US$1.7m. (This is based on the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at US$303k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$1.5m.
That means Nolan Watson receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Sandstorm Gold has changed from year to year.
Is Sandstorm Gold Ltd. Growing?
Over the last three years Sandstorm Gold Ltd. has grown its earnings per share (EPS) by an average of 86% per year (using a line of best fit). Its revenue is up 7.1% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Shareholders might be interested in this free visualization of analyst forecasts.
Has Sandstorm Gold Ltd. Been A Good Investment?
Sandstorm Gold Ltd. has served shareholders reasonably well, with a total return of 28% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
Remuneration for Nolan Watson is close enough to the median pay for a CEO of a similar sized company .
The company is growing EPS but shareholder returns have been sound but not amazing. So considering these factors, we think the CEO pay is probably quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Sandstorm Gold.
If you want to buy a stock that is better than Sandstorm Gold, this free list of high return, low debt companies is a great place to look.
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