How Much Is Rochester Resources Ltd. (CVE:RCT) CEO Getting Paid?

This article will reflect on the compensation paid to Nick DeMare who has served as CEO of Rochester Resources Ltd. (CVE:RCT) since 2018. This analysis will also assess whether Rochester Resources pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Rochester Resources

Comparing Rochester Resources Ltd.'s CEO Compensation With the industry

At the time of writing, our data shows that Rochester Resources Ltd. has a market capitalization of CA$2.0m, and reported total annual CEO compensation of CA$75k for the year to May 2020. That's a slight decrease of 7.9% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$24k.

On comparing similar-sized companies in the industry with market capitalizations below CA$260m, we found that the median total CEO compensation was CA$155k. In other words, Rochester Resources pays its CEO lower than the industry median. What's more, Nick DeMare holds CA$188k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 89% of total compensation represents salary, while the remainder of 11% is other remuneration. It's interesting to note that Rochester Resources allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Rochester Resources Ltd.'s Growth

Rochester Resources Ltd. has seen its earnings per share (EPS) increase by 18% a year over the past three years. Its revenue is up 38% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Rochester Resources Ltd. Been A Good Investment?

Boasting a total shareholder return of 143% over three years, Rochester Resources Ltd. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

As we touched on above, Rochester Resources Ltd. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. And given most shareholders are probably very happy with recent shareholder returns, they might even think Nick deserves a raise!

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Rochester Resources (of which 2 make us uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

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. 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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