Sholom Feldman became the CEO of Cann Global Limited (ASX:CGB) in 2007, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Cann Global pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for Cann Global
Comparing Cann Global Limited's CEO Compensation With the industry
According to our data, Cann Global Limited has a market capitalization of AU$46m, and paid its CEO total annual compensation worth AU$312k over the year to June 2020. That is, the compensation was roughly the same as last year. Notably, the salary of AU$312k is the entirety of the CEO compensation.
For comparison, other companies in the industry with market capitalizations below AU$259m, reported a median total CEO compensation of AU$431k. From this we gather that Sholom Feldman is paid around the median for CEOs in the industry.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$312k | AU$312k | 100% |
| Other | - | - | - |
| Total Compensation | AU$312k | AU$312k | 100% |
On an industry level, roughly 66% of total compensation represents salary and 34% is other remuneration. At the company level, Cann Global pays Sholom Feldman solely through a salary, preferring to go down a conventional route. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Cann Global Limited's Growth
Over the last three years, Cann Global Limited has shrunk its earnings per share by 6.1% per year. In the last year, its revenue is up 269%.
The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Cann Global Limited Been A Good Investment?
With a three year total loss of 87% for the shareholders, Cann Global Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Cann Global pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we noted earlier, Cann Global pays its CEO in line with similar-sized companies belonging to the same industry. However, revenues have increased over the past year, a positive sign for the company. On the other hand, shareholder returns for Sholom are negative over the same period. EPS growth is bleak as well, adding fuel to the fire. Overall, we wouldn't say CEO is highly paid, but shareholders might not go for a raise before business metrics start to improve precipitously.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 5 warning signs for Cann Global (2 are significant!) that you should be aware of before investing here.
Switching gears from Cann Global, 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 ASX:CGB
Cann Global
Cann Global Limited engages in the production and distribution of medicinal cannabis medications, natural foods, and cosmeceuticals in Australia and internationally.
Flawless balance sheet medium.
