Almadex Minerals Ltd.'s (CVE:DEX) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Almadex Minerals will host its Annual General Meeting on 26th of June
• Total pay for CEO Morgan Poliquin includes CA$288.9k salary
• Total compensation is 116% above industry average
• Almadex Minerals' three-year loss to shareholders was 15% while its EPS was down 14% over the past three years

Almadex Minerals Ltd. (CVE:DEX) has not performed well recently and CEO Morgan Poliquin will probably need to up their game. At the upcoming AGM on 26th of June, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for Almadex Minerals

Comparing Almadex Minerals Ltd.'s CEO Compensation With The Industry

At the time of writing, our data shows that Almadex Minerals Ltd. has a market capitalization of CA$13m, and reported total annual CEO compensation of CA$414k for the year to December 2023. Notably, that's an increase of 37% over the year before. In particular, the salary of CA$288.9k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Canadian Metals and Mining industry with market capitalizations below CA$274m, reported a median total CEO compensation of CA$191k. This suggests that Morgan Poliquin is paid more than the median for the industry. Moreover, Morgan Poliquin also holds CA$440k worth of Almadex Minerals stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	CA$289k	CA$168k	70%
Other	CA$125k	CA$135k	30%
Total Compensation	CA$414k	CA$303k	100%

On an industry level, around 94% of total compensation represents salary and 6% is other remuneration. Almadex Minerals pays a modest slice of remuneration through salary, as compared to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Almadex Minerals Ltd.'s Growth Numbers

Over the last three years, Almadex Minerals Ltd. has shrunk its earnings per share by 14% per year. It saw its revenue drop 88% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Almadex Minerals Ltd. Been A Good Investment?

With a three year total loss of 15% for the shareholders, Almadex Minerals Ltd. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for Almadex Minerals that investors should be aware of in a dynamic business environment.

Important note: Almadex Minerals 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com