The CEO of Morguard Corporation (TSE:MRC) is Kuldip Sahi, 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 Morguard
How Does Total Compensation For Kuldip Sahi Compare With Other Companies In The Industry?
Our data indicates that Morguard Corporation has a market capitalization of CA$1.4b, and total annual CEO compensation was reported as CA$3.0m for the year to December 2019. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$1.2m.
On comparing similar companies from the same industry with market caps ranging from CA$537m to CA$2.1b, we found that the median CEO total compensation was CA$2.4m. From this we gather that Kuldip Sahi is paid around the median for CEOs in the industry. Furthermore, Kuldip Sahi directly owns CA$813m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | CA$1.2m | CA$1.1m | 39% |
| Other | CA$1.8m | CA$1.8m | 61% |
| Total Compensation | CA$3.0m | CA$2.9m | 100% |
On an industry level, total compensation is equally proportioned between salary and other compensation, that is, they each represent approximately 50% of the total compensation. In Morguard's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Morguard Corporation's Growth Numbers
Earnings per share at Morguard Corporation are much the same as they were three years ago, albeit with slightly higher. It achieved revenue growth of 3.3% over the last year.
We're not particularly impressed by the revenue growth, but we're happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Morguard Corporation Been A Good Investment?
With a three year total loss of 29% for the shareholders, Morguard Corporation would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
As we noted earlier, Morguard pays its CEO in line with similar-sized companies belonging to the same industry. This doesn't look good when you place it against the backdrop of negative shareholder returns and flat earnings growth. CEO pay isn't exceptionally high, but considering poor performance, shareholders will likely hold off support for a raise until results improve.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 2 warning signs for Morguard (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from Morguard, 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. 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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About TSX:MRC
Morguard
A real estate investment and management company, engages in property ownership, development, and investment advisory services in Canada and the United States.
Slightly overvalued with questionable track record.
