Increases to CEO Compensation Might Be Put On Hold For Now at Midland Exploration Inc. (CVE:MD)
As many shareholders of Midland Exploration Inc. (CVE:MD) will be aware, they have not made a gain on their investment in the past three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 09 February 2023. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
See our latest analysis for Midland Exploration
How Does Total Compensation For Gino Roger Compare With Other Companies In The Industry?
At the time of writing, our data shows that Midland Exploration Inc. has a market capitalization of CA$58m, and reported total annual CEO compensation of CA$359k for the year to September 2022. That's just a smallish increase of 3.6% on last year. We note that the salary portion, which stands at CA$284.4k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the Canadian Metals and Mining industry with market capitalizations under CA$266m, the reported median total CEO compensation was CA$183k. This suggests that Gino Roger is paid more than the median for the industry. Moreover, Gino Roger also holds CA$701k worth of Midland Exploration stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
On an industry level, around 89% of total compensation represents salary and 11% is other remuneration. In Midland Exploration's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Midland Exploration Inc.'s Growth Numbers
Midland Exploration Inc. has seen its earnings per share (EPS) increase by 2.8% a year over the past three years. It achieved revenue growth of 4.1% over the last year.
We're not particularly impressed by the revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Midland Exploration Inc. Been A Good Investment?
Given the total shareholder loss of 13% over three years, many shareholders in Midland Exploration Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 5 warning signs for Midland Exploration (2 shouldn't be ignored!) that you should be aware of before investing here.
Switching gears from Midland Exploration, 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.
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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.
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