How Does Capstone Mining's (TSE:CS) CEO Salary Compare to Peers?

Darren Pylot has been the CEO of Capstone Mining Corp. (TSE:CS) since 1995, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Capstone Mining.

Check out our latest analysis for Capstone Mining

Comparing Capstone Mining Corp.'s CEO Compensation With the industry

Our data indicates that Capstone Mining Corp. has a market capitalization of CA$581m, and total annual CEO compensation was reported as CA$2.2m for the year to December 2019. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$541k.

In comparison with other companies in the industry with market capitalizations ranging from CA$266m to CA$1.1b, the reported median CEO total compensation was CA$858k. Accordingly, our analysis reveals that Capstone Mining Corp. pays Darren Pylot north of the industry median. Furthermore, Darren Pylot directly owns CA$4.8m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 83% of total compensation represents salary and 17% is other remuneration. In Capstone Mining's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Capstone Mining Corp.'s Growth Numbers

Capstone Mining Corp. has seen its earnings per share (EPS) increase by 26% a year over the past three years. In the last year, its revenue is down 14%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Capstone Mining Corp. Been A Good Investment?

Given the total shareholder loss of 5.2% over three years, many shareholders in Capstone Mining Corp. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we touched on above, Capstone Mining Corp. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But the company has impressed with its EPS growth, but it's disappointing to see negative shareholder returns over the same period. Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Capstone Mining that you should be aware of before investing.

Switching gears from Capstone Mining, 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.

This article by Simply Wall St is general in nature. 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.

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