Patrick Goodfellow has been the CEO of Goodfellow Inc. (TSE:GDL) since 2017. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Goodfellow
How Does Patrick Goodfellow's Compensation Compare With Similar Sized Companies?
According to our data, Goodfellow Inc. has a market capitalization of CA$41m, and paid its CEO total annual compensation worth CA$357k over the year to November 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$306k. We took a group of companies with market capitalizations below CA$264m, and calculated the median CEO total compensation to be CA$225k.
Thus we can conclude that Patrick Goodfellow receives more in total compensation than the median of a group of companies in the same market, and of similar size to Goodfellow Inc.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Goodfellow, below.
Is Goodfellow Inc. Growing?
Over the last three years Goodfellow Inc. has grown its earnings per share (EPS) by an average of 89% per year (using a line of best fit). In the last year, its revenue is down 7.1%.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Goodfellow Inc. Been A Good Investment?
Since shareholders would have lost about 43% over three years, some Goodfellow Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at Goodfellow Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. So you may want to check if insiders are buying Goodfellow shares with their own money (free access).
If you want to buy a stock that is better than Goodfellow, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
About TSX:GDL
Goodfellow
Engages in the wholesale distribution of building materials, and floor coverings in Canada, the United States, and internationally.
Flawless balance sheet second-rate dividend payer.
