Gary Goldberg became the CEO of Newmont Mining Corporation (NYSE:NEM) in 2013. First, this article will compare CEO compensation with compensation at other large companies. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
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How Does Gary Goldberg’s Compensation Compare With Similar Sized Companies?
Our data indicates that Newmont Mining Corporation is worth US$18b, and total annual CEO compensation is US$14m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.3m. When we examined a group of companies with market caps over US$8.0b, we found that their median CEO compensation was US$11m. (We took a wide range because the CEOs of massive companies tend to be paid similar amounts – even though some are quite a bit bigger than others).
So Gary Goldberg is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance. So this free report on the analyst consensus forecasts could help you make a master move on this stock.
You can see a visual representation of the CEO compensation at Newmont Mining, below.
Is Newmont Mining Corporation Growing?
On average over the last three years, Newmont Mining Corporation has shrunk earnings per share by 19% each year. In the last year, its revenue is down -1.7%.
Unfortunately, earnings per share have trended lower over the last three years. 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.
Has Newmont Mining Corporation Been A Good Investment?
I think that the total shareholder return of 84%, over three years, would leave most Newmont Mining Corporation shareholders smiling. 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.
In Summary…
Gary Goldberg is paid around the same as most CEOs of large companies.
The company isn’t growing earnings per share, but shareholder returns have been strong over the last three years. So we can’t see a reason to suggest the pay is inappropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Newmont Mining (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.
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 editorial-team@simplywallst.com.