Yahoo Finance Is Hochschild Mining plc’s (LON:HOC) CEO Paid Enough Relative To Peers?
Ignacio Bustamante became the CEO of Hochschild Mining plc (LON:HOC) in 2010. 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.
View our latest analysis for Hochschild Mining
How Does Ignacio Bustamante’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Hochschild Mining plc has a market cap of UK£841m, and is paying total annual CEO compensation of US$4.6m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$700k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO compensation was US$1.3m.
It would therefore appear that Hochschild Mining plc pays Ignacio Bustamante 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.
The graphic below shows how CEO compensation at Hochschild Mining has changed from year to year.
Is Hochschild Mining plc Growing?
Over the last three years Hochschild Mining plc has grown its earnings per share (EPS) by an average of 99% per year. It achieved revenue growth of 9.3% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Hochschild Mining plc Been A Good Investment?
Boasting a total shareholder return of 246% over three years, Hochschild Mining plc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We compared total CEO remuneration at Hochschild Mining plc with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Hochschild Mining.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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.
