The performance at Exco Technologies Limited (TSE:XTC) has been rather lacklustre of late and shareholders may be wondering what CEO Darren Kirk is planning to do about this. At the next AGM coming up on 26 January 2022, they can influence managerial decision making through voting on resolutions, including executive remuneration. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We think CEO compensation looks appropriate given the data we have put together.
How Does Total Compensation For Darren Kirk Compare With Other Companies In The Industry?
At the time of writing, our data shows that Exco Technologies Limited has a market capitalization of CA$393m, and reported total annual CEO compensation of CA$1.1m for the year to September 2021. That's a notable increase of 50% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$500k.
In comparison with other companies in the industry with market capitalizations ranging from CA$250m to CA$1.0b, the reported median CEO total compensation was CA$4.6m. This suggests that Darren Kirk is paid below the industry median. What's more, Darren Kirk holds CA$300k worth of shares in the company in their own name.
Speaking on an industry level, nearly 23% of total compensation represents salary, while the remainder of 77% is other remuneration. According to our research, Exco Technologies has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Exco Technologies Limited's Growth Numbers
Over the last three years, Exco Technologies Limited has not seen its earnings per share change much, though they have deteriorated slightly. It achieved revenue growth of 12% over the last year.
The lack of EPS growth is certainly uninspiring. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Exco Technologies Limited Been A Good Investment?
Exco Technologies Limited has generated a total shareholder return of 25% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
Shareholder returns while positive, need to be looked at along with earnings, which have failed to grow and this could mean that the current momentum may not continue. Shareholders might want to question the board about these concerns, and revisit their investment thesis for the company.
If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Exco Technologies.
Important note: Exco Technologies 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.
Valuation is complex, but we're helping make it simple.
Find out whether Exco Technologies is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free Analysis
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Exco Technologies Limited, together with its subsidiaries, designs, develops, manufactures, and sells dies, molds, components and assemblies, and consumable equipment for the die-cast, extrusion, and automotive industries.
Excellent balance sheet average dividend payer.