It's Probably Less Likely That Morien Resources Corp.'s (CVE:MOX) CEO Will See A Huge Pay Rise This Year

The underwhelming share price performance of Morien Resources Corp. (CVE:MOX) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 19 May 2021. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for Morien Resources

How Does Total Compensation For Dawson Brisco Compare With Other Companies In The Industry?

According to our data, Morien Resources Corp. has a market capitalization of CA$8.7m, and paid its CEO total annual compensation worth CA$160k over the year to December 2020. Notably, that's an increase of 29% over the year before. Notably, the salary of CA$160k is the entirety of the CEO compensation.

In comparison with other companies in the industry with market capitalizations under CA$242m, the reported median total CEO compensation was CA$147k. From this we gather that Dawson Brisco is paid around the median for CEOs in the industry.

Component	2020	2019	Proportion (2020)
Salary	CA$160k	CA$124k	100%
Other	-	-	-
Total Compensation	CA$160k	CA$124k	100%

On an industry level, roughly 93% of total compensation represents salary and 7% is other remuneration. At the company level, Morien Resources pays Dawson Brisco solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Morien Resources Corp.'s Growth Numbers

Morien Resources Corp.'s earnings per share (EPS) grew 20% per year over the last three years. Its revenue is down 69% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Morien Resources Corp. Been A Good Investment?

Few Morien Resources Corp. shareholders would feel satisfied with the return of -70% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Morien Resources 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. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

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. We did our research and identified 3 warning signs (and 2 which are a bit unpleasant) in Morien Resources we think you should know about.

Switching gears from Morien Resources, 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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