2 weeks ago29 Jan 2020 09:23
Does Orosur Mining Inc.'s (TSE:OMI) CEO Pay Compare Well With Peers?
In 2013 Pedro Ignacio Salazar Blanco was appointed CEO of Orosur Mining Inc. (TSE:OMI). First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Orosur Mining
How Does Pedro Ignacio Salazar Blanco's Compensation Compare With Similar Sized Companies?
Our data indicates that Orosur Mining Inc. is worth CA$9.6m, and total annual CEO compensation was reported as US$418k for the year to May 2019. While we always look at total compensation first, we note that the salary component is less, at US$304k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$170k.
It would therefore appear that Orosur Mining Inc. pays Pedro Ignacio Salazar Blanco more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Orosur Mining has changed over time.
Is Orosur Mining Inc. Growing?
Orosur Mining Inc. has reduced its earnings per share by an average of 98% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down 72%.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Orosur Mining Inc. Been A Good Investment?
Since shareholders would have lost about 76% over three years, some Orosur Mining Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared the total CEO remuneration paid by Orosur Mining Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. Arguably worse, investors are without a positive return for the last three years. Some might well form the view that the CEO is paid too generously! So you may want to check if insiders are buying Orosur Mining shares wi