We Think Shareholders May Want To Consider A Review Of Inca One Gold Corp.'s (CVE:INCA) CEO Compensation Package

Key Insights

• Inca One Gold will host its Annual General Meeting on 14th of December

• Total pay for CEO Ed Kelly includes US$177.2k salary

• Total compensation is 104% above industry average

• Over the past three years, Inca One Gold's EPS fell by 15% and over the past three years, the total loss to shareholders 81%

Inca One Gold Corp. (CVE:INCA) has not performed well recently and CEO Ed Kelly will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 14th of December. 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. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for Inca One Gold

Comparing Inca One Gold Corp.'s CEO Compensation With The Industry

According to our data, Inca One Gold Corp. has a market capitalization of CA$4.9m, and paid its CEO total annual compensation worth US$277k over the year to April 2023. That's slightly lower by 7.9% over the previous year. Notably, the salary which is US$177.2k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Canadian Metals and Mining industry with market capitalizations below CA$272m, we found that the median total CEO compensation was US$136k. Accordingly, our analysis reveals that Inca One Gold Corp. pays Ed Kelly north of the industry median. Moreover, Ed Kelly also holds CA$114k worth of Inca One Gold stock directly under their own name.

On an industry level, roughly 94% of total compensation represents salary and 6% is other remuneration. In Inca One Gold'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.

Inca One Gold Corp.'s Growth

Over the last three years, Inca One Gold Corp. has shrunk its earnings per share by 15% per year. It saw its revenue drop 21% over the last year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Inca One Gold Corp. Been A Good Investment?

The return of -81% over three years would not have pleased Inca One Gold Corp. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 5 warning signs for Inca One Gold you should be aware of, and 3 of them are a bit concerning.

Important note: Inca One Gold is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.