Nick Blitterswyk has been the CEO of UGE International Ltd. (CVE:UGE) since 2010, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for UGE International
How Does Total Compensation For Nick Blitterswyk Compare With Other Companies In The Industry?
According to our data, UGE International Ltd. has a market capitalization of CA$50m, and paid its CEO total annual compensation worth US$177k over the year to December 2019. We note that's an increase of 32% above last year. We note that the salary portion, which stands at US$150.0k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the industry with market capitalizations below CA$254m, reported a median total CEO compensation of US$821k. This suggests that Nick Blitterswyk is paid below the industry median. Moreover, Nick Blitterswyk also holds CA$2.3m worth of UGE International stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | US$150k | US$111k | 85% |
| Other | US$27k | US$23k | 15% |
| Total Compensation | US$177k | US$134k | 100% |
Speaking on an industry level, nearly 23% of total compensation represents salary, while the remainder of 77% is other remuneration. UGE International is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
UGE International Ltd.'s Growth
Over the past three years, UGE International Ltd. has seen its earnings per share (EPS) grow by 37% per year. Its revenue is down 56% over the previous year.
This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has UGE International Ltd. Been A Good Investment?
Most shareholders would probably be pleased with UGE International Ltd. for providing a total return of 40% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
As we noted earlier, UGE International pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 5 warning signs for UGE International you should be aware of, and 1 of them is significant.
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. 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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About TSXV:UGE
UGE International
Develops, builds, finances, owns, and operates commercial and community solar facilities in Canada, the United States, and the Philippines.
Medium-low with limited growth.
