Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Clive Johnson has been the CEO of B2Gold Corp. (TSE:BTO) since 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
How Does Clive Johnson’s Compensation Compare With Similar Sized Companies?
Our data indicates that B2Gold Corp. is worth CA$4.1b, and total annual CEO compensation is US$5.5m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$1.2m. We looked at a group of companies with market capitalizations from CA$2.7b to CA$8.5b, and the median CEO compensation was CA$3.8m.
Thus we can conclude that Clive Johnson receives more in total compensation than the median of a group of companies in the same market, and of similar size to B2Gold Corp.. However, this doesn’t necessarily mean the pay 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.
The graphic below shows how CEO compensation at B2Gold has changed from year to year.
Is B2Gold Corp. Growing?
B2Gold Corp. has increased its earnings per share (EPS) by an average of 122% a year, over the last three years (using a line of best fit). Its revenue is up 74% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Shareholders might be interested in this free visualization of analyst forecasts.
Has B2Gold Corp. Been A Good Investment?
I think that the total shareholder return of 189%, over three years, would leave most B2Gold Corp. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared the total CEO remuneration paid by B2Gold Corp., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling B2Gold (free visualization of insider trades).
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.
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 firstname.lastname@example.org.