How Much Did Galantas Gold's (CVE:GAL) CEO Pocket Last Year?

Roland Phelps became the CEO of Galantas Gold Corporation (CVE:GAL) in 2003, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Galantas Gold pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Galantas Gold

How Does Total Compensation For Roland Phelps Compare With Other Companies In The Industry?

According to our data, Galantas Gold Corporation has a market capitalization of CA$9.8m, and paid its CEO total annual compensation worth CA$353k over the year to December 2019. That is, the compensation was roughly the same as last year. In particular, the salary of CA$338.9k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below CA$260m, we found that the median total CEO compensation was CA$154k. This suggests that Roland Phelps is paid more than the median for the industry. Furthermore, Roland Phelps directly owns CA$1.5m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 89% of total compensation represents salary, while the remainder of 11% is other remuneration. Galantas Gold pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. 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 Galantas Gold Corporation's Growth Numbers

Galantas Gold Corporation's earnings per share (EPS) grew 3.8% per year over the last three years. In the last year, its revenue has collapsed effectively to zero.

We generally like to see a little revenue growth, but the modest improvement in EPS is good. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Galantas Gold Corporation Been A Good Investment?

With a three year total loss of 65% for the shareholders, Galantas Gold Corporation would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

Galantas Gold pays its CEO a majority of compensation through a salary. As we touched on above, Galantas Gold Corporation is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Over the last three years, shareholder returns have been downright disappointing for Galantas Gold, and although EPS growth is steady, it hasn't set the world on fire. This doesn't look good when you see that Roland is earning more than the industry median. With such poor returns, we would understand if shareholders had concerns related to the CEO's pay.

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. In our study, we found 5 warning signs for Galantas Gold you should be aware of, and 4 of them are significant.

Switching gears from Galantas Gold, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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