Tony Jensen has been the CEO of Royal Gold Inc (NASDAQ:RGLD) since 2006. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Tony Jensen’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Royal Gold Inc has a market cap of US$4.7b, and is paying total annual CEO compensation of US$3.9m. (This figure is for the year to 2018). That’s a notable increase of 19% on last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$750k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$4.9m.
That means Tony Jensen receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Royal Gold has changed from year to year.
Is Royal Gold Inc Growing?
Royal Gold Inc has reduced its earnings per share by an average of 23% a year, over the last three years. It achieved revenue growth of 2.3% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Royal Gold Inc Been A Good Investment?
Boasting a total shareholder return of 105% over three years, Royal Gold Inc has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
Remuneration for Tony Jensen is close enough to the median pay for a CEO of a similar sized company .
We feel that earnings per share have been a bit disappointing, but it’s nice to see positive shareholder returns over the last three years. So we doubt many are complaining about the fairly normal CEO pay. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Royal Gold.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.