Key Insights

Newmont to hold its Annual General Meeting on 24th of April Salary of US$1.44m is part of CEO Tom Palmer's total remuneration Total compensation is similar to the industry average Newmont's EPS declined by 109% over the past three years  while total shareholder loss over the past three years was 35%

Shareholders will probably not be too impressed with the underwhelming results at Newmont Corporation (NYSE:NEM) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 24th of April. 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.

Check out our latest analysis for Newmont

How Does Total Compensation For Tom Palmer Compare With Other Companies In The Industry?

At the time of writing, our data shows that Newmont Corporation has a market capitalization of US$44b, and reported total annual CEO compensation of US$12m for the year to December 2023. That's a notable decrease of 14% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$1.4m.

In comparison with other companies in the American Metals and Mining industry with market capitalizations over US$8.0b, the reported median total CEO compensation was US$12m. From this we gather that Tom Palmer is paid around the median for CEOs in the industry. Moreover, Tom Palmer also holds US$13m worth of Newmont stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component 2023 2022 Proportion (2023) Salary US$1.4m US$1.4m 12% Other US$10m US$12m 88% Total Compensation US$12m US$14m 100%

Speaking on an industry level, nearly 27% of total compensation represents salary, while the remainder of 73% is other remuneration. Newmont sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance. ceo-compensation

A Look at Newmont Corporation's Growth Numbers

Over the last three years, Newmont Corporation has shrunk its earnings per share by 109% per year. The trailing twelve months of revenue was pretty much the same as the prior period.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue hardly impresses. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..



Has Newmont Corporation Been A Good Investment?

Few Newmont Corporation shareholders would feel satisfied with the return of -35% over three years. 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which is a bit concerning) in Newmont we think you should know about.

Important note: Newmont 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.

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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.