Daniel Racine has been the CEO of Yamana Gold Inc. (TSE:YRI) since 2018. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Daniel Racine's Compensation Compare With Similar Sized Companies?
Our data indicates that Yamana Gold Inc. is worth CA$4.2b, and total annual CEO compensation is US$2.9m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$662k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of US$2.0b to US$6.4b. The median total CEO compensation was US$3.0m.
So Daniel Racine receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Yamana Gold, below.
Is Yamana Gold Inc. Growing?
Yamana Gold Inc. has increased its earnings per share (EPS) by an average of 68% a year, over the last three years (using a line of best fit). It saw its revenue drop -4.5% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. It could be important to check this free visual depiction of what analysts expect for the future.
Has Yamana Gold Inc. Been A Good Investment?
Since shareholders would have lost about 22% over three years, some Yamana Gold Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
Daniel Racine is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. So you may want to check if insiders are buying Yamana Gold shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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