Is Trevali Mining Corporation's (TSE:TV) CEO Salary Justified?

In 2009 Mark Cruise was appointed CEO of Trevali Mining Corporation (TSE:TV). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Trevali Mining

How Does Mark Cruise's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Trevali Mining Corporation has a market cap of CA$340m, and is paying total annual CEO compensation of US$2.7m. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$450k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$134m to CA$534m. The median total CEO compensation was CA$794k.

Thus we can conclude that Mark Cruise receives more in total compensation than the median of a group of companies in the same market, and of similar size to Trevali Mining Corporation. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at Trevali Mining, below.

Is Trevali Mining Corporation Growing?

Over the last three years Trevali Mining Corporation has shrunk its earnings per share by an average of 14% per year (measured with a line of best fit). It achieved revenue growth of 22% over the last year.

Sadly for shareholders, earnings per share are actually down, over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.

Has Trevali Mining Corporation Been A Good Investment?

With a three year total loss of 23%, Trevali Mining Corporation would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We examined the amount Trevali Mining Corporation pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.

Just as bad, share price gains for investors have failed to materialize, over the same period. This analysis suggests to us that the CEO is paid too generously! Shareholders may want to check for free if Trevali Mining insiders are buying or selling shares.

Important note: Trevali Mining may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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 editorial-team@simplywallst.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.