Shareholders Will Probably Hold Off On Increasing Diamcor Mining Inc.'s (CVE:DMI) CEO Compensation For The Time Being

Key Insights

• Diamcor Mining to hold its Annual General Meeting on 20th of December
• Total pay for CEO Dean Taylor includes CA$315.6k salary
• Total compensation is 72% above industry average
• Diamcor Mining's three-year loss to shareholders was 31% while its EPS grew by 49% over the past three years

The underwhelming share price performance of Diamcor Mining Inc. (CVE:DMI) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 20th of December. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Diamcor Mining

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

At the time of writing, our data shows that Diamcor Mining Inc. has a market capitalization of CA$7.1m, and reported total annual CEO compensation of CA$316k for the year to March 2023. There was no change in the compensation compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth CA$316k.

On comparing similar-sized companies in the Canadian Metals and Mining industry with market capitalizations below CA$270m, we found that the median total CEO compensation was CA$183k. This suggests that Dean Taylor is paid more than the median for the industry. Moreover, Dean Taylor also holds CA$292k worth of Diamcor Mining stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	CA$316k	CA$316k	100%
Other	-	-	-
Total Compensation	CA$316k	CA$316k	100%

On an industry level, around 94% of total compensation represents salary and 6% is other remuneration. Speaking on a company level, Diamcor Mining prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Diamcor Mining Inc.'s Growth

Over the past three years, Diamcor Mining Inc. has seen its earnings per share (EPS) grow by 49% per year. In the last year, its revenue is down 31%.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Diamcor Mining Inc. Been A Good Investment?

The return of -31% over three years would not have pleased Diamcor Mining Inc. shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Diamcor Mining rewards its CEO solely through a salary, ignoring non-salary benefits completely. The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 6 warning signs for Diamcor Mining (of which 3 are concerning!) that you should know about in order to have a holistic understanding of the stock.

Important note: Diamcor Mining 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.