Shareholders May Be More Conservative With Alexco Resource Corp.'s (TSE:AXU) CEO Compensation For Now

CEO Clynt Nauman has done a decent job of delivering relatively good performance at Alexco Resource Corp. (TSE:AXU) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 10 June 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Alexco Resource

How Does Total Compensation For Clynt Nauman Compare With Other Companies In The Industry?

Our data indicates that Alexco Resource Corp. has a market capitalization of CA$554m, and total annual CEO compensation was reported as CA$1.4m for the year to December 2020. We note that's a decrease of 24% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$382k.

On comparing similar companies from the same industry with market caps ranging from CA$242m to CA$969m, we found that the median CEO total compensation was CA$960k. This suggests that Clynt Nauman is paid more than the median for the industry. What's more, Clynt Nauman holds CA$8.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2020

2019

Proportion (2020)

Salary

CA$382k

CA$389k

28%

Other

CA$982k

CA$1.4m

72%

Total Compensation

CA$1.4m

CA$1.8m

100%

Talking in terms of the industry, salary represented approximately 58% of total compensation out of all the companies we analyzed, while other remuneration made up 42% of the pie. In Alexco Resource's case, non-salary compensation represents a greater slice of total remuneration, 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-compensation
ceo-compensation

A Look at Alexco Resource Corp.'s Growth Numbers

Alexco Resource Corp. has reduced its earnings per share by 56% a year over the last three years. Its revenue is up 131% over the last year.

The reduction in EPS, over three years, is arguably concerning. 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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Alexco Resource Corp. Been A Good Investment?

Boasting a total shareholder return of 103% over three years, Alexco Resource Corp. 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…

Although the company has performed relatively well, we still think there are some areas that could be improved. EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 4 warning signs (and 2 which shouldn't be ignored) in Alexco Resource we think you should know about.

Switching gears from Alexco Resource, 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.

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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