We Think Some Shareholders May Hesitate To Increase Victoria Gold Corp.'s (TSE:VGCX) CEO Compensation

Key Insights

• Victoria Gold will host its Annual General Meeting on 10th of May

• Total pay for CEO John McConnell includes CA$625.0k salary

• The overall pay is 30% above the industry average

• Over the past three years, Victoria Gold's EPS grew by 13% and over the past three years, the total loss to shareholders 53%

In the past three years, the share price of Victoria Gold Corp. (TSE:VGCX) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 10th of May. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Victoria Gold

Comparing Victoria Gold Corp.'s CEO Compensation With The Industry

Our data indicates that Victoria Gold Corp. has a market capitalization of CA$463m, and total annual CEO compensation was reported as CA$2.0m for the year to December 2023. We note that's a small decrease of 7.9% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$625k.

On examining similar-sized companies in the Canadian Metals and Mining industry with market capitalizations between CA$274m and CA$1.1b, we discovered that the median CEO total compensation of that group was CA$1.5m. Accordingly, our analysis reveals that Victoria Gold Corp. pays John McConnell north of the industry median. What's more, John McConnell holds CA$5.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 94% of total compensation represents salary, while the remainder of 6% is other remuneration. Victoria Gold pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Victoria Gold Corp.'s Growth

Victoria Gold Corp.'s earnings per share (EPS) grew 13% per year over the last three years. It achieved revenue growth of 30% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Victoria Gold Corp. Been A Good Investment?

The return of -53% over three years would not have pleased Victoria Gold Corp. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Victoria Gold that you should be aware of before investing.

Switching gears from Victoria Gold, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.