A Look At Vitreous Glass' (CVE:VCI) CEO Remuneration

The CEO of Vitreous Glass Inc. (CVE:VCI) is Pat Cashion, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Vitreous Glass

Comparing Vitreous Glass Inc.'s CEO Compensation With the industry

Our data indicates that Vitreous Glass Inc. has a market capitalization of CA$23m, and total annual CEO compensation was reported as CA$805k for the year to September 2019. We note that's a decrease of 12% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$86k.

On comparing similar-sized companies in the industry with market capitalizations below CA$271m, we found that the median total CEO compensation was CA$186k. Accordingly, our analysis reveals that Vitreous Glass Inc. pays Pat Cashion north of the industry median. Furthermore, Pat Cashion directly owns CA$6.4m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 22% of total compensation out of all the companies we analyzed, while other remuneration made up 78% of the pie. Vitreous Glass 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 Vitreous Glass Inc.'s Growth Numbers

Over the last three years, Vitreous Glass Inc. has not seen its earnings per share change much, though there is a slight positive movement. In the last year, its revenue is up 3.0%.

We'd prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Vitreous Glass Inc. Been A Good Investment?

Vitreous Glass Inc. has generated a total shareholder return of 28% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

As previously discussed, Pat is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But the business isn't growing earnings per share, and the returns to shareholders haven't been wonderful. We'd stop short of saying CEO pay is inappropriate, but we'd like to see healthier business growth from the company, moving forward.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which makes us a bit uncomfortable) in Vitreous Glass we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. 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.
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