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Is B2Gold Corp.'s (TSE:BTO) CEO Paid Enough Relative To Peers?

Simply Wall St

In 2007 Clive Johnson was appointed CEO of B2Gold Corp. (TSE:BTO). First, this article will compare CEO compensation with compensation at similar sized companies. 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.

View our latest analysis for B2Gold

How Does Clive Johnson's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that B2Gold Corp. has a market cap of CA$4.4b, and is paying total annual CEO compensation of US$7.5m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.2m. When we examined a selection of companies with market caps ranging from CA$2.6b to CA$8.4b, we found the median CEO total compensation was CA$4.0m.

As you can see, Clive Johnson is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean B2Gold Corp. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at B2Gold, below.

TSX:BTO CEO Compensation, July 23rd 2019

Is B2Gold Corp. Growing?

Over the last three years B2Gold Corp. has grown its earnings per share (EPS) by an average of 87% per year (using a line of best fit). In the last year, its revenue is up 41%.

This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. You might want to check this free visual report on analyst forecasts for future earnings.

Has B2Gold Corp. Been A Good Investment?

B2Gold Corp. has served shareholders reasonably well, with a total return of 19% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

We compared total CEO remuneration at B2Gold Corp. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

However we must not forget that the EPS growth has been very strong over three years. Looking at the same time period, we think that the shareholder returns are respectable. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. Shareholders may want to check for free if B2Gold insiders are buying or selling shares.

If you want to buy a stock that is better than B2Gold, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.