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San Gold Corporation - Management Compensation Comparison

San Gold Corporation - Management Compensation Comparison

Management Compensation Comparison as of July 12, 2014

In the article: Management Compensation Comparison - Does Your Stock's Management Rewards Itself Excessively, I explain how I compare management's compensation with the compensation paid at other relevant and similar companies, to find out whether or not management rewards itself as "Reasonable", "Excessive" or as "Attractive" (for an investor's point of view).

Management Compensation Comparison for Junior Gold Producers

General Data

Ticker  Latest Financials  Market cap (M)  Total Current Assets (TCA)  Total Current Liabilities (TCL)  Net Current Assets (TCA-TCL) 
SGR (TSX)  2014-03-31  C$ 56 Million  C$ 34.50 Million  C$ 10.22 Million  C$ 24.28 Million 
CRJ (TSX)  2014-03-31  C$ 55 Million  C$ 41.91 Million  C$ 24.83 Million  C$ 17.08 Million 
ELG (TSX)  2014-03-31  C$ 67 Million  C$ 26.73 Million  C$ 16.76 Million  C$ 9.97 Million 
MMY (TSX-V)  2014-03-31  C$ 69 Million  $ 52.14 Million  $ 8.99 Million  $ 43.15 Million 

General Compensation Data 

Ticker  Latest Proxy Circular  Applicable Year  Total NEO's Compensation (TNC)  Total Director's Compensation (TDC)  Total Management Compensation (TMC) 
SGR (TSX) May 31, 2013 2012 $2,214,640  $1,300,050 $3,514,690
CRJ (TSX) April 15, 2013 2012 $1,850,879 $1,283,500 $3,134,379
ELG (TSX) April 26, 2013 2012 $1,986,278 $346,104 $2,314,382
MMY (TSX-V) January 10, 2014 2013 $3,420,533  $1,122,528 $4,543,061

NEO Compensation Data

Ticker  Latest Proxy Circular  Applicable Year  CEO Total Compensation (CEOTC)  CFO Total Compensation (CFOTC)  Total NEO's Management Compensation (TMC) 
SGR (TSX)  May 31, 2013  2012  $615,585  $512,010  $2,214,640 
CRJ (TSX)  April 15, 2013  2012  $630,650  $394,519  $1,850,879 
ELG (TSX)  April 26, 2013  2012  $694,000  $364,067  $1,986,278 
MMY (TSX-V)  January 10, 2014  2013  $1,281,531  $633,446  $3,420,533 

Market cap Compensation Ratio's

Ticker 

Total Compensation Market cap Ratio (TMC / M)

Total CEO Compensation Market cap Ratio (TCEOC / M)

Total CFO Compensation Market cap Ratio (TCFOC / M) 

SGR (TSX) 0.040 0.011 0.009 
CRJ (TSX) 0.034 0.011 0.007 
ELG (TSX) 0.030 0.010 0.005 
MMY (TSX-V) 0.050 0.019 0.009 
Total 0.154  0.051 0.030 
Average 0.044 0.013 0.008 

Net Current Assets Total Compensation Ratio's

Ticker 

Net Current Assets Total Compensation Ratio ((TCA-TCL) / TMC)

Net Current Assets Total CEO Compensation Ratio ((TCA-TCL) / TCEOC) 

Net Current Assets Total CFO Compensation Ratio ((TCA-TCL) / TCFOC) 
SGR (TSX) 10.96 39.44  47.42 
CRJ (TSX) 9.23 27.08  43.29 
ELG (TSX) 5.02 14.37  27.39 
MMY (TSX-V) 12.61 33.67  68.12 
Total 37.82 114.56  186.22 
Average 9.46 28.64  46.56 

My Commentary and Conclusion Regarding this Management Compensation Comparison

Ideally, I like to see the outcome of the Total Compensation Market cap Ratio of San Gold Corporation to be the lowest of the similar and relevant companies found, although I believe it's reasonable when the outcome of this ratio is around the average. As you can see in the table above, the company's outcome is below average compared to the companies I have determined as relevant and similar. In addition, the outcome of the related Total CEO & CFO Compensation Market cap Ratio's are both around average too. Therefore, based on these ratio's, I determine that the company's compensation policy is "Reasonable".

For San Gold Corporation's Net Current Assets Total Compensation Ratio, I prefer to see the outcome to be the highest of the similar and relevant companies found, although I believe it's reasonable when the company's outcome of this ratio is around the average. As you can see in the table above, the company's outcome is above average compared to the companies I have determined as relevant and similar. In addition, the outcome of the related Net Current Assets Total CEO & CFO Compensation Ratio's are both above average too. Therefore, based on these ratio's, I determine that the company's compensation policy is "Reasonable" too.

Thus, based on the outcome of this management compensation comparison, I must conclude that San Gold Corporation has a "Reasonable" compensation policy.

However, the company's latest proxy circular refers to the compensation paid in 2012. Perhaps management is willing to disclose what the current compensation of key management is, so that I can estimate if this conclusion is still accurate.

 

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About Jeroen Snoeks

Jeroen Snoeks - UndervaluedEquity.com

Jeroen Snoeks is the founder of UndervaluedEquity.com, a website for investors passionate about investing in undervalued stocks. Through UndervaluedEquity.com, he shares his experience and knowledge and will soon reveal his personal stock portfolio.


 
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