Key Insights

• Hecla Mining will host its Annual General Meeting on 17th of May
• CEO Phillips Baker's total compensation includes salary of US$784.4k
• Total compensation is 32% below industry average
• Hecla Mining's three-year loss to shareholders was 28% while its EPS was down 110% over the past three years

Performance at Hecla Mining Company (NYSE:HL) has not been particularly rosy recently and shareholders will likely be holding CEO Phillips Baker and the board accountable for this. At the upcoming AGM on 17th of May, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. The data we gathered below shows that CEO compensation looks acceptable for now.

How Does Total Compensation For Phillips Baker Compare With Other Companies In The Industry?

At the time of writing, our data shows that Hecla Mining Company has a market capitalization of US$3.4b, and reported total annual CEO compensation of US$4.1m for the year to December 2023. That's a notable decrease of 9.5% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$784k.

On examining similar-sized companies in the American Metals and Mining industry with market capitalizations between US$2.0b and US$6.4b, we discovered that the median CEO total compensation of that group was US$6.1m. Accordingly, Hecla Mining pays its CEO under the industry median. Furthermore, Phillips Baker directly owns US$18m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 30% of total compensation represents salary and 70% is other remuneration. Hecla Mining sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Hecla Mining Company's Growth

Hecla Mining Company has reduced its earnings per share by 110% a year over the last three years. Its revenue is down 3.0% over the previous year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. 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 Hecla Mining Company Been A Good Investment?

Given the total shareholder loss of 28% over three years, many shareholders in Hecla Mining Company are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for Hecla Mining that investors should think about before committing capital to this stock.

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.