We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Titan Mining Corporation's (TSE:TI) CEO For Now

The underwhelming share price performance of Titan Mining Corporation (TSE:TI) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 30 June 2021. 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.

Check out our latest analysis for Titan Mining

How Does Total Compensation For Don Taylor Compare With Other Companies In The Industry?

According to our data, Titan Mining Corporation has a market capitalization of CA$55m, and paid its CEO total annual compensation worth US$425k over the year to December 2020. Notably, that's an increase of 75% over the year before. We note that the salary portion, which stands at US$300.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under CA$246m, the reported median total CEO compensation was US$124k. Hence, we can conclude that Don Taylor is remunerated higher than the industry median.

Component	2020	2019	Proportion (2020)
Salary	US$300k	US$242k	71%
Other	US$125k	-	29%
Total Compensation	US$425k	US$242k	100%

Talking in terms of the industry, salary represented approximately 92% of total compensation out of all the companies we analyzed, while other remuneration made up 8% of the pie. Titan Mining sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Titan Mining Corporation's Growth

Titan Mining Corporation's earnings per share (EPS) grew 12% per year over the last three years. Its revenue is up 832% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Titan Mining Corporation Been A Good Investment?

With a total shareholder return of -71% over three years, Titan Mining Corporation shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for Titan Mining (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.

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. 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.
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