Yahoo Finance We Think GoGold Resources Inc.'s (TSE:GGD) CEO Compensation Package Needs To Be Put Under A Microscope
Key Insights
GoGold Resources' Annual General Meeting to take place on 26th of March
CEO Brad Langille's total compensation includes salary of US$133.7k
The total compensation is 153% higher than the average for the industry
GoGold Resources' three-year loss to shareholders was 49% while its EPS was down 136% over the past three years
GoGold Resources Inc. (TSE:GGD) has not performed well recently and CEO Brad Langille will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 26th of March. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.
View our latest analysis for GoGold Resources
How Does Total Compensation For Brad Langille Compare With Other Companies In The Industry?
According to our data, GoGold Resources Inc. has a market capitalization of CA$384m, and paid its CEO total annual compensation worth US$1.5m over the year to September 2023. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$134k.
For comparison, other companies in the Canadian Metals and Mining industry with market capitalizations ranging between CA$136m and CA$543m had a median total CEO compensation of US$583k. Accordingly, our analysis reveals that GoGold Resources Inc. pays Brad Langille north of the industry median. Furthermore, Brad Langille directly owns CA$19m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$134k | US$139k | 9% |
Other | US$1.3m | US$1.3m | 91% |
Total Compensation | US$1.5m | US$1.5m | 100% |
Talking in terms of the industry, salary represented approximately 96% of total compensation out of all the companies we analyzed, while other remuneration made up 4% of the pie. It's interesting to note that GoGold Resources 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.
GoGold Resources Inc.'s Growth
Over the last three years, GoGold Resources Inc. has shrunk its earnings per share by 136% per year. Its revenue is down 20% over the previous year.
Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 GoGold Resources Inc. Been A Good Investment?
Few GoGold Resources Inc. shareholders would feel satisfied with the return of -49% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
So you may want to check if insiders are buying GoGold Resources 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
