Stock Analysis

Here's What We Think About Diamcor Mining Inc.'s (CVE:DMI) CEO Pay

TSXV:DMI
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In 2007 Dean Taylor was appointed CEO of Diamcor Mining Inc. (CVE:DMI). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Diamcor Mining

How Does Dean Taylor's Compensation Compare With Similar Sized Companies?

Our data indicates that Diamcor Mining Inc. is worth CA$6.1m, and total annual CEO compensation is CA$389k. (This is based on the year to March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$312k. We looked at a group of companies with market capitalizations under CA$270m, and the median CEO total compensation was CA$144k.

As you can see, Dean Taylor is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Diamcor Mining Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

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

TSXV:DMI CEO Compensation, April 26th 2019
TSXV:DMI CEO Compensation, April 26th 2019

Is Diamcor Mining Inc. Growing?

Diamcor Mining Inc. has increased its earnings per share (EPS) by an average of 3.0% a year, over the last three years (using a line of best fit). It saw its revenue drop -31% over the last year.

I would prefer it if there was revenue growth, but it is good to see EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Diamcor Mining Inc. Been A Good Investment?

With a three year total loss of 91%, Diamcor Mining Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared total CEO remuneration at Diamcor Mining Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Shareholders may want to check for free if Diamcor Mining insiders are buying or selling shares.

If you want to buy a stock that is better than Diamcor Mining, this freelist of high return, low debt companies is a great place to look.

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.