We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Decisive Dividend Corporation's (CVE:DE) CEO For Now

Key Insights

• Decisive Dividend to hold its Annual General Meeting on 25th of June
• CEO Jeff Schellenberg's total compensation includes salary of CA$322.5k
• The overall pay is 96% above the industry average
• Decisive Dividend's EPS grew by 84% over the past three years while total shareholder return over the past three years was 149%

CEO Jeff Schellenberg has done a decent job of delivering relatively good performance at Decisive Dividend Corporation (CVE:DE) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 25th of June. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Decisive Dividend

How Does Total Compensation For Jeff Schellenberg Compare With Other Companies In The Industry?

Our data indicates that Decisive Dividend Corporation has a market capitalization of CA$142m, and total annual CEO compensation was reported as CA$583k for the year to December 2023. Notably, that's an increase of 71% over the year before. Notably, the salary which is CA$322.5k, represents a considerable chunk of the total compensation being paid.

On comparing similar-sized companies in the Canada Industrials industry with market capitalizations below CA$274m, we found that the median total CEO compensation was CA$297k. This suggests that Jeff Schellenberg is paid more than the median for the industry. Furthermore, Jeff Schellenberg directly owns CA$613k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	CA$323k	CA$280k	55%
Other	CA$260k	CA$60k	45%
Total Compensation	CA$583k	CA$340k	100%

Talking in terms of the industry, salary represented approximately 77% of total compensation out of all the companies we analyzed, while other remuneration made up 23% of the pie. Decisive Dividend pays a modest slice of remuneration through salary, as compared to the broader 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.

Decisive Dividend Corporation's Growth

Decisive Dividend Corporation's earnings per share (EPS) grew 84% per year over the last three years. It achieved revenue growth of 20% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Decisive Dividend Corporation Been A Good Investment?

We think that the total shareholder return of 149%, over three years, would leave most Decisive Dividend Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

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. That's why we did our research, and identified 3 warning signs for Decisive Dividend (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com