Most Shareholders Will Probably Find That The CEO Compensation For Finning International Inc. (TSE:FTT) Is Reasonable

Key Insights

• Finning International will host its Annual General Meeting on 13th of May
• CEO Kevin Parkes' total compensation includes salary of CA$1.08m
• The total compensation is similar to the average for the industry
• Over the past three years, Finning International's EPS grew by 19% and over the past three years, the total shareholder return was 23%

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Performance at Finning International Inc. (TSE:FTT) has been reasonably good and CEO Kevin Parkes has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 13th of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for Finning International

Comparing Finning International Inc.'s CEO Compensation With The Industry

Our data indicates that Finning International Inc. has a market capitalization of CA$5.3b, and total annual CEO compensation was reported as CA$6.7m for the year to December 2024. Notably, that's an increase of 21% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$1.1m.

For comparison, other companies in the Canadian Trade Distributors industry with market capitalizations ranging between CA$2.8b and CA$8.8b had a median total CEO compensation of CA$8.5m. This suggests that Finning International remunerates its CEO largely in line with the industry average. Furthermore, Kevin Parkes directly owns CA$2.0m worth of shares in the company.

Component	2024	2023	Proportion (2024)
Salary	CA$1.1m	CA$1.0m	16%
Other	CA$5.7m	CA$4.6m	84%
Total Compensation	CA$6.7m	CA$5.6m	100%

Talking in terms of the industry, salary represented approximately 32% of total compensation out of all the companies we analyzed, while other remuneration made up 68% of the pie. Finning International 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 Finning International Inc.'s Growth Numbers

Over the past three years, Finning International Inc. has seen its earnings per share (EPS) grow by 19% per year. Its revenue is up 6.5% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Finning International Inc. Been A Good Investment?

Finning International Inc. has served shareholders reasonably well, with a total return of 23% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Finning International that investors should be aware of in a dynamic business environment.

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. 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.