Key Insights

• Americas Gold and Silver will host its Annual General Meeting on 25th of June

• Salary of US$303.8k is part of CEO Darren Blasutti's total remuneration

• Total compensation is 419% above industry average

• Americas Gold and Silver's three-year loss to shareholders was 80% while its EPS grew by 68% over the past three years

Shareholders of Americas Gold and Silver Corporation (TSE:USA) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 25th of June. They could also influence management through voting on resolutions such as executive remuneration. 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 Americas Gold and Silver

Comparing Americas Gold and Silver Corporation's CEO Compensation With The Industry

Our data indicates that Americas Gold and Silver Corporation has a market capitalization of CA$93m, and total annual CEO compensation was reported as US$725k for the year to December 2023. That's a notable decrease of 31% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$304k.

For comparison, other companies in the Canadian Metals and Mining industry with market capitalizations below CA$274m, reported a median total CEO compensation of US$140k. Accordingly, our analysis reveals that Americas Gold and Silver Corporation pays Darren Blasutti north of the industry median. Moreover, Darren Blasutti also holds CA$483k worth of Americas Gold and Silver stock directly under their own name.

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. Americas Gold and Silver sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Americas Gold and Silver Corporation's Growth Numbers

Over the past three years, Americas Gold and Silver Corporation has seen its earnings per share (EPS) grow by 68% per year. In the last year, its revenue is up 7.8%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Americas Gold and Silver Corporation Been A Good Investment?

Few Americas Gold and Silver Corporation shareholders would feel satisfied with the return of -80% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. 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. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 4 warning signs for Americas Gold and Silver you should be aware of, and 2 of them make us uncomfortable.

Switching gears from Americas Gold and Silver, 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]