Key Insights
Under the guidance of CEO Randy V. Smallwood, Wheaton Precious Metals Corp. (TSE:WPM) has performed reasonably well recently. As shareholders go into the upcoming AGM on 10th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
Check out our latest analysis for Wheaton Precious Metals
How Does Total Compensation For Randy V. Smallwood Compare With Other Companies In The Industry?
Our data indicates that Wheaton Precious Metals Corp. has a market capitalization of CA$33b, and total annual CEO compensation was reported as US$5.7m for the year to December 2023. We note that’s an increase of 16% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$942k.
For comparison, other companies in the Canadian Metals and Mining industry with market capitalizations above CA$11b, reported a median total CEO compensation of US$5.1m. So it looks like Wheaton Precious Metals compensates Randy V. Smallwood in line with the median for the industry. Moreover, Randy V. Smallwood also holds CA$29m worth of Wheaton Precious Metals stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
|
Component |
2023 |
2022 |
Proportion (2023) |
|
Salary |
US$942k |
US$886k |
16% |
|
Other |
US$4.8m |
US$4.1m |
84% |
|
Total Compensation |
US$5.7m |
US$4.9m |
100% |
Speaking on an industry level, nearly 94% of total compensation represents salary, while the remainder of 6% is other remuneration. In Wheaton Precious Metals’ 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.
Wheaton Precious Metals Corp.’s Growth
Wheaton Precious Metals Corp.’s earnings per share (EPS) grew 1.6% per year over the last three years. Its revenue is down 4.6% over the previous year.
We would prefer it if there was revenue growth, but the modest EPS growth gives us some relief. In conclusion we can’t form a strong opinion about business performance yet; but it’s one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company’s future earnings..
Has Wheaton Precious Metals Corp. Been A Good Investment?
Boasting a total shareholder return of 41% over three years, Wheaton Precious Metals 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.
To Conclude…
Given that the company’s overall performance has been reasonable, the CEO remuneration policy might not be shareholders’ central point of focus in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.
Whatever your view on compensation, you might want to check if insiders are buying or selling Wheaton Precious Metals shares (free trial).
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.