Stock Analysis

How Much Did Goodfellow's (TSE:GDL) CEO Pocket Last Year?

TSX:GDL
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Patrick Goodfellow has been the CEO of Goodfellow Inc. (TSE:GDL) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Goodfellow.

See our latest analysis for Goodfellow

How Does Total Compensation For Patrick Goodfellow Compare With Other Companies In The Industry?

According to our data, Goodfellow Inc. has a market capitalization of CA$42m, and paid its CEO total annual compensation worth CA$375k over the year to November 2019. That's just a smallish increase of 5.1% on last year. Notably, the salary which is CA$317.8k, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below CA$272m, we found that the median total CEO compensation was CA$375k. This suggests that Goodfellow remunerates its CEO largely in line with the industry average. Moreover, Patrick Goodfellow also holds CA$302k worth of Goodfellow stock directly under their own name.

Component20192018Proportion (2019)
Salary CA$318k CA$306k 85%
Other CA$57k CA$51k 15%
Total CompensationCA$375k CA$357k100%

Speaking on an industry level, nearly 54% of total compensation represents salary, while the remainder of 46% is other remuneration. It's interesting to note that Goodfellow pays out a greater portion of remuneration through salary, compared to the industry. 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.

TSX:GDL CEO Compensation July 8th 2020
TSX:GDL CEO Compensation July 8th 2020

A Look at Goodfellow Inc.'s Growth Numbers

Goodfellow Inc. has seen its earnings per share (EPS) increase by 112% a year over the past three years. Its revenue is down 3.5% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Goodfellow Inc. Been A Good Investment?

Given the total shareholder loss of 28% over three years, many shareholders in Goodfellow Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we noted earlier, Goodfellow pays its CEO in line with similar-sized companies belonging to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. But earnings growth is moving in a favorable direction, certainly a positive sign. Overall, we wouldn't say Patrick is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 5 warning signs for Goodfellow (1 doesn't sit too well with us!) that you should be aware of before investing here.

Important note: Goodfellow 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.

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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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