How Does Wesdome Gold Mines' (TSE:WDO) CEO Salary Compare to Peers?

This article will reflect on the compensation paid to Duncan Middlemiss who has served as CEO of Wesdome Gold Mines Ltd. (TSE:WDO) since 2016. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Wesdome Gold Mines.

Check out our latest analysis for Wesdome Gold Mines

How Does Total Compensation For Duncan Middlemiss Compare With Other Companies In The Industry?

At the time of writing, our data shows that Wesdome Gold Mines Ltd. has a market capitalization of CA$1.5b, and reported total annual CEO compensation of CA$2.1m for the year to December 2019. That's a notable increase of 41% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$525k.

On comparing similar companies from the same industry with market caps ranging from CA$514m to CA$2.1b, we found that the median CEO total compensation was CA$1.3m. Accordingly, our analysis reveals that Wesdome Gold Mines Ltd. pays Duncan Middlemiss north of the industry median. Moreover, Duncan Middlemiss also holds CA$1.8m worth of Wesdome Gold Mines stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 93% of total compensation out of all the companies we analyzed, while other remuneration made up 7.0% of the pie. In Wesdome Gold Mines' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Wesdome Gold Mines Ltd.'s Growth Numbers

Wesdome Gold Mines Ltd.'s earnings per share (EPS) grew 146% per year over the last three years. In the last year, its revenue is up 40%.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Wesdome Gold Mines Ltd. Been A Good Investment?

Most shareholders would probably be pleased with Wesdome Gold Mines Ltd. for providing a total return of 433% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As previously discussed, Duncan is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. And given most shareholders are probably very happy with recent returns, they might even think that Duncan deserves a raise!

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Wesdome Gold Mines that investors should think about before committing capital to this stock.

Important note: Wesdome Gold Mines is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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