Shareholders May Not Be So Generous With Morien Resources Corp.'s (CVE:MOX) CEO Compensation And Here's Why

Key Insights

• Morien Resources will host its Annual General Meeting on 20th of June
• CEO Dawson Brisco's total compensation includes salary of CA$200.0k
• The overall pay is 30% above the industry average
• Morien Resources' total shareholder return over the past three years was 79% while its EPS grew by 19% over the past three years

Under the guidance of CEO Dawson Brisco, Morien Resources Corp. (CVE:MOX) has performed reasonably well recently. As shareholders go into the upcoming AGM on 20th of June, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Morien Resources

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

At the time of writing, our data shows that Morien Resources Corp. has a market capitalization of CA$17m, and reported total annual CEO compensation of CA$250k for the year to December 2023. That's slightly lower by 3.8% over the previous year. In particular, the salary of CA$200.0k, 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$275m, reported a median total CEO compensation of CA$192k. Accordingly, our analysis reveals that Morien Resources Corp. pays Dawson Brisco north of the industry median. Furthermore, Dawson Brisco directly owns CA$181k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	CA$200k	CA$160k	80%
Other	CA$50k	CA$100k	20%
Total Compensation	CA$250k	CA$260k	100%

On an industry level, roughly 94% of total compensation represents salary and 6% is other remuneration. Morien Resources sets aside a smaller share of compensation for salary, in comparison to the overall 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 Morien Resources Corp.'s Growth Numbers

Morien Resources Corp. has seen its earnings per share (EPS) increase by 19% a year over the past three years. In the last year, its revenue is down 19%.

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. 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?

We think that the total shareholder return of 79%, over three years, would leave most Morien Resources Corp. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

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 4 warning signs (and 2 which make us uncomfortable) in Morien Resources we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.