Increases to Silvercorp Metals Inc.'s (TSE:SVM) CEO Compensation Might Cool off for now

CEO Rui Feng has done a decent job of delivering relatively good performance at Silvercorp Metals Inc. (TSE:SVM) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 24 September 2021. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Silvercorp Metals

How Does Total Compensation For Rui Feng Compare With Other Companies In The Industry?

According to our data, Silvercorp Metals Inc. has a market capitalization of CA$931m, and paid its CEO total annual compensation worth US$3.4m over the year to March 2021. We note that's an increase of 32% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$743k.

On examining similar-sized companies in the industry with market capitalizations between CA$510m and CA$2.0b, we discovered that the median CEO total compensation of that group was US$1.1m. This suggests that Rui Feng is paid more than the median for the industry. What's more, Rui Feng holds CA$30m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2021

2020

Proportion (2021)

Salary

US$743k

US$743k

22%

Other

US$2.7m

US$1.9m

78%

Total Compensation

US$3.4m

US$2.6m

100%

On an industry level, around 86% of total compensation represents salary and 14% is other remuneration. It's interesting to note that Silvercorp Metals allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensationceo-compensation
ceo-compensation

Silvercorp Metals Inc.'s Growth

Over the last three years, Silvercorp Metals Inc. has shrunk its earnings per share by 4.3% per year. It achieved revenue growth of 28% over the last year.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one 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 Silvercorp Metals Inc. Been A Good Investment?

Boasting a total shareholder return of 64% over three years, Silvercorp Metals Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude…

Although the company has performed relatively well, we still think there are some areas that could be improved. We still think that some shareholders will be hesitant of increasing CEO pay until EPS growth improves, since they are already paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Silvercorp Metals that investors should think about before committing capital to this stock.

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.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

By Matt Earle

Matthew Earle is the Founder of MiningFeeds. In 2005, Matt founded MiningNerds.com to provide data and information to the mining investment community. This site was merged with Highgrade Review to form MiningFeeds. Matt has a B.Sc. degree with a minor in geology from the University of Toronto.

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