Here's Why Shareholders May Consider Paying Boyd Group Services Inc.'s (TSE:BYD) CEO A Little More

Key Insights

• Boyd Group Services' Annual General Meeting to take place on 15th of May
• Salary of US$785.0k is part of CEO Tim O'Day's total remuneration
• Total compensation is 46% below industry average
• Over the past three years, Boyd Group Services' EPS grew by 24% and over the past three years, the total shareholder return was 21%

Shareholders will probably not be disappointed by the robust results at Boyd Group Services Inc. (TSE:BYD) recently and they will be keeping this in mind as they go into the AGM on 15th of May. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

See our latest analysis for Boyd Group Services

Comparing Boyd Group Services Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Boyd Group Services Inc. has a market capitalization of CA$5.7b, and reported total annual CEO compensation of US$3.6m for the year to December 2023. That's a notable increase of 20% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$785k.

On examining similar-sized companies in the Canadian Commercial Services industry with market capitalizations between CA$2.7b and CA$8.8b, we discovered that the median CEO total compensation of that group was US$6.6m. That is to say, Tim O'Day is paid under the industry median. What's more, Tim O'Day holds CA$12m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$785k	US$710k	22%
Other	US$2.8m	US$2.3m	78%
Total Compensation	US$3.6m	US$3.0m	100%

Speaking on an industry level, nearly 45% of total compensation represents salary, while the remainder of 55% is other remuneration. It's interesting to note that Boyd Group Services allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Boyd Group Services Inc.'s Growth

Over the past three years, Boyd Group Services Inc. has seen its earnings per share (EPS) grow by 24% per year. In the last year, its revenue is up 21%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Boyd Group Services Inc. Been A Good Investment?

Boyd Group Services Inc. has generated a total shareholder return of 21% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it manages to keep up the current streak, CEO remuneration could well be one of shareholders' least concerns. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Boyd Group Services that you should be aware of before investing.

Important note: Boyd Group Services 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. 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.