TSE:MMX) in 2016, and we think it’s a good time to look at the executive’s compensation against the backdrop of overall company performance. This analysis will also assess whether Maverix Metals pays its CEO appropriately, considering recent earnings growth and total shareholder returns.” data-reactid=”28″ type=”text”>Dan O’Flaherty became the CEO of Maverix Metals Inc. (TSE:MMX) in 2016, and we think it’s a good time to look at the executive’s compensation against the backdrop of overall company performance. This analysis will also assess whether Maverix Metals pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Dan O’Flaherty Compare With Other Companies In The Industry?
According to our data, Maverix Metals Inc. has a market capitalization of CA$753m, and paid its CEO total annual compensation worth CA$1.4m over the year to December 2019. Notably, that’s an increase of 38% over the year before. While this analysis focuses on total compensation, it’s worth acknowledging that the salary portion is lower, valued at CA$460k.
On comparing similar companies from the same industry with market caps ranging from CA$263m to CA$1.1b, we found that the median CEO total compensation was CA$894k. This suggests that Dan O’Flaherty is paid more than the median for the industry. Furthermore, Dan O’Flaherty directly owns CA$19m worth of shares in the company, implying that they are deeply invested in the company’s success.
On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. Maverix Metals sets aside a smaller share of compensation for salary, in comparison to the overall industry. It’s important to note that a slant towards non-salary compensation suggests that total pay is tied to the company’s performance.
Maverix Metals Inc.’s Growth
Maverix Metals Inc. has reduced its earnings per share by 19% a year over the last three years. It achieved revenue growth of 50% over the last year.
this free visualization of analyst forecasts.” data-reactid=”54″ type=”text”>The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching. Historical performance can sometimes be a good indicator on what’s coming up next but if you want to peer into the company’s future you might be interested in this free visualization of analyst forecasts.
Has Maverix Metals Inc. Been A Good Investment?
We think that the total shareholder return of 89%, over three years, would leave most Maverix Metals Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
As previously discussed, Dan is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But Maverix Metals is growing its revenue, and total shareholder returns have also been pleasing for the last three years. Importantly though, EPS has not been growing over the same stretch. Although we would have liked to see EPS growth, positive shareholder returns, and growing revenues make us believe CEO compensation is reasonable.
1 warning sign for Maverix Metals that investors should look into moving forward.” data-reactid=”59″ type=”text”>While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Maverix Metals that investors should look into moving forward.
list of high return, low debt companies is a great place to look.” data-reactid=”60″ type=”text”>Switching gears from Maverix Metals, if you’re hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.