Brian Lock became the CEO of Scorpio Gold Corporation (CVE:SGN) in 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Brian Lock’s Compensation Compare With Similar Sized Companies?
Our data indicates that Scorpio Gold Corporation is worth CA$6.2m, and total annual CEO compensation was reported as US$265k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$265k. We looked at a group of companies with market capitalizations under CA$261m, and the median CEO total compensation was CA$212k.
So Brian Lock receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Scorpio Gold has changed from year to year.
Is Scorpio Gold Corporation Growing?
Over the last three years Scorpio Gold Corporation has grown its earnings per share (EPS) by an average of 60% per year (using a line of best fit). It saw its revenue drop 54% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. 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 Scorpio Gold Corporation Been A Good Investment?
Given the total loss of 63% over three years, many shareholders in Scorpio Gold Corporation are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Brian Lock is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but it’s disappointing to see negative shareholder returns over three years. We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Scorpio Gold (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned.
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