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Under the guidance of CEO Marie Inkster, Lundin Mining Corporation (TSE:LUN) has performed reasonably well recently. As shareholders go into the upcoming AGM on 07 May 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.
See our latest analysis for Lundin Mining
How Does Total Compensation For Marie Inkster Compare With Other Companies In The Industry?
Our data indicates that Lundin Mining Corporation has a market capitalization of CA$11b, and total annual CEO compensation was reported as US$4.3m for the year to December 2020. That's a notable increase of 19% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$821k.
On comparing similar companies from the same industry with market caps ranging from CA$4.9b to CA$15b, we found that the median CEO total compensation was US$5.4m. From this we gather that Marie Inkster is paid around the median for CEOs in the industry. Furthermore, Marie Inkster directly owns CA$6.0m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$821k | US$754k | 19% |
| Other | US$3.4m | US$2.8m | 81% |
| Total Compensation | US$4.3m | US$3.6m | 100% |
Talking in terms of the industry, salary represented approximately 94% of total compensation out of all the companies we analyzed, while other remuneration made up 6% of the pie. Lundin 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.
A Look at Lundin Mining Corporation's Growth Numbers
Lundin Mining Corporation's earnings per share (EPS) grew 1.4% per year over the last three years. It achieved revenue growth of 26% over the last year.
It's great to see that revenue growth is strong. Combined with modest EPS growth, we get a good impression of the company. We wouldn't say this is necessarily top notch growth, but it is certainly promising. 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 Lundin Mining Corporation Been A Good Investment?
We think that the total shareholder return of 92%, over three years, would leave most Lundin Mining Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.