What We Learned About Cielo Waste Solutions' (CSE:CMC) CEO Pay

Don Allan has been the CEO of Cielo Waste Solutions Corp. (CSE:CMC) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Cielo Waste Solutions pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Cielo Waste Solutions

Comparing Cielo Waste Solutions Corp.'s CEO Compensation With the industry

Our data indicates that Cielo Waste Solutions Corp. has a market capitalization of CA$30m, and total annual CEO compensation was reported as CA$312k for the year to April 2020. We note that's a small decrease of 4.2% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth CA$312k.

In comparison with other companies in the industry with market capitalizations under CA$257m, the reported median total CEO compensation was CA$284k. From this we gather that Don Allan is paid around the median for CEOs in the industry. Moreover, Don Allan also holds CA$1.4m worth of Cielo Waste Solutions stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 61% of total compensation represents salary and 39% is other remuneration. Speaking on a company level, Cielo Waste Solutions prefers to tread along a traditional path, disbursing all compensation through a salary. 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.

A Look at Cielo Waste Solutions Corp.'s Growth Numbers

Cielo Waste Solutions Corp.'s earnings per share (EPS) grew 18% per year over the last three years. Its revenue is down 30% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Cielo Waste Solutions Corp. Been A Good Investment?

Given the total shareholder loss of 60% over three years, many shareholders in Cielo Waste Solutions Corp. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Cielo Waste Solutions pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As previously discussed, Don is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. But EPS growth is moving in a favorable direction, certainly a positive sign. Overall, we wouldn't say Don is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 5 warning signs for Cielo Waste Solutions (of which 3 are a bit unpleasant!) 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. 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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