It's Unlikely That Shareholders Will Increase Hecla Mining Company's (NYSE:HL) Compensation By Much This Year

Key Insights

• Hecla Mining to hold its Annual General Meeting on 17th of May
• Salary of US$784.4k is part of CEO Phillips Baker's total remuneration
• Total compensation is 32% below industry average
• Hecla Mining's three-year loss to shareholders was 28% while its EPS was down 110% over the past three years

The underwhelming performance at Hecla Mining Company (NYSE:HL) recently has probably not pleased shareholders. At the upcoming AGM on 17th of May, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. The data we gathered below shows that CEO compensation looks acceptable for now.

Check out our latest analysis for Hecla Mining

Comparing Hecla Mining Company's CEO Compensation With The Industry

Our data indicates that Hecla Mining Company has a market capitalization of US$3.4b, and total annual CEO compensation was reported as US$4.1m for the year to December 2023. We note that's a decrease of 9.5% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$784k.

For comparison, other companies in the American Metals and Mining industry with market capitalizations ranging between US$2.0b and US$6.4b had a median total CEO compensation of US$6.1m. This suggests that Phillips Baker is paid below the industry median. Furthermore, Phillips Baker directly owns US$18m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	US$784k	US$723k	19%
Other	US$3.4m	US$3.9m	81%
Total Compensation	US$4.1m	US$4.6m	100%

On an industry level, around 30% of total compensation represents salary and 70% is other remuneration. Hecla Mining pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Hecla Mining Company's Growth Numbers

Over the last three years, Hecla Mining Company has shrunk its earnings per share by 110% per year. Its revenue is down 3.0% over the previous year.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Hecla Mining Company Been A Good Investment?

Since shareholders would have lost about 28% over three years, some Hecla Mining Company investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Hecla Mining that investors should look into moving forward.

Important note: Hecla Mining is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.