Robert Day became the CEO of Ceres Global Ag Corp. (TSE:CRP) in 2016. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Robert Day’s Compensation Compare With Similar Sized Companies?
According to our data, Ceres Global Ag Corp. has a market capitalization of CA$130m, and pays its CEO total annual compensation worth US$543k. (This is based on the year to June 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$375k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$108k.
It would therefore appear that Ceres Global Ag Corp. pays Robert Day more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Ceres Global Ag, below.
Is Ceres Global Ag Corp. Growing?
Over the last three years Ceres Global Ag Corp. has shrunk its earnings per share by an average of 4.7% per year (measured with a line of best fit). Its revenue is down -7.9% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
Has Ceres Global Ag Corp. Been A Good Investment?
Since shareholders would have lost about 9.0% over three years, some Ceres Global Ag Corp. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Ceres Global Ag Corp. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Just as bad, share price gains for investors have failed to materialize, over the same period. This analysis suggests to us that the CEO is paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling Ceres Global Ag shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.