Yahoo Finance Is North American Palladium Ltd’s (TSE:PDL) CEO Pay Fair?
Jim Gallagher became the CEO of North American Palladium Ltd (TSE:PDL) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for North American Palladium
How Does Jim Gallagher’s Compensation Compare With Similar Sized Companies?
Our data indicates that North American Palladium Ltd is worth CA$616m, and total annual CEO compensation is CA$1m. Notably, that’s an increase of 88% over the year before. We examined companies with market caps from CA$263m to CA$1.1b, and discovered that the median CEO compensation of that group was CA$1m.
So Jim Gallagher is paid around the average of the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at North American Palladium, below.
Is North American Palladium Ltd Growing?
On average over the last three years, North American Palladium Ltd has grown earnings per share (EPS) by 161% each year. Its revenue is up 62% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has North American Palladium Ltd Been A Good Investment?
Most shareholders would probably be pleased with North American Palladium Ltd for providing a total return of 171% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
Remuneration for Jim Gallagher is close enough to the median pay for a CEO of a similar sized company .
Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling North American Palladium Ltd shares (free trial).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
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.
