The Compensation For Mongolia Growth Group Ltd.'s (CVE:YAK) CEO Looks Deserved And Here's Why

Key Insights

• Mongolia Growth Group's Annual General Meeting to take place on 10th of October
• Salary of CA$195.1k is part of CEO Harris Kupperman's total remuneration
• The overall pay is comparable to the industry average
• Mongolia Growth Group's EPS grew by 17% over the past three years while total shareholder return over the past three years was 638%

We have been pretty impressed with the performance at Mongolia Growth Group Ltd. (CVE:YAK) recently and CEO Harris Kupperman deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 10th of October. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Mongolia Growth Group

How Does Total Compensation For Harris Kupperman Compare With Other Companies In The Industry?

At the time of writing, our data shows that Mongolia Growth Group Ltd. has a market capitalization of CA$41m, and reported total annual CEO compensation of CA$195k for the year to December 2022. We note that's a decrease of 17% compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth CA$195k.

For comparison, other companies in the Canadian Real Estate industry with market capitalizations below CA$273m, reported a median total CEO compensation of CA$264k. From this we gather that Harris Kupperman is paid around the median for CEOs in the industry. Moreover, Harris Kupperman also holds CA$9.8m worth of Mongolia Growth Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2022	2021	Proportion (2022)
Salary	CA$195k	CA$188k	100%
Other	-	CA$47k	-
Total Compensation	CA$195k	CA$235k	100%

Talking in terms of the industry, salary represented approximately 58% of total compensation out of all the companies we analyzed, while other remuneration made up 42% of the pie. At the company level, Mongolia Growth Group pays Harris Kupperman solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Mongolia Growth Group Ltd.'s Growth Numbers

Over the past three years, Mongolia Growth Group Ltd. has seen its earnings per share (EPS) grow by 17% per year. Its revenue is up 34% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Mongolia Growth Group Ltd. Been A Good Investment?

Boasting a total shareholder return of 638% over three years, Mongolia Growth Group Ltd. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Mongolia Growth Group pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for Mongolia Growth Group that investors should think about before committing capital to this stock.

Switching gears from Mongolia Growth Group, 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. 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.