Key Things To Understand About Caldwell Partners International's (TSE:CWL) CEO Pay Cheque

John Wallace has been the CEO of The Caldwell Partners International Inc. (TSE:CWL) since 2008, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Caldwell Partners International pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Caldwell Partners International

Comparing The Caldwell Partners International Inc.'s CEO Compensation With the industry

Our data indicates that The Caldwell Partners International Inc. has a market capitalization of CA$37m, and total annual CEO compensation was reported as CA$1.4m for the year to August 2020. We note that's an increase of 22% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$465k.

For comparison, other companies in the industry with market capitalizations below CA$254m, reported a median total CEO compensation of CA$740k. This suggests that John Wallace is paid more than the median for the industry. Furthermore, John Wallace directly owns CA$1.1m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. Caldwell Partners International sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at The Caldwell Partners International Inc.'s Growth Numbers

The Caldwell Partners International Inc. has seen its earnings per share (EPS) increase by 27% a year over the past three years. It saw its revenue drop 21% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent 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 The Caldwell Partners International Inc. Been A Good Investment?

Boasting a total shareholder return of 55% over three years, The Caldwell Partners International Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

As we touched on above, The Caldwell Partners International Inc. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, Caldwell Partners International has produced strong EPS growth and shareholder returns over the last three years. As a result of the excellent all-round performance of the company, we believe CEO compensation is fair. Given the strong history of shareholder returns, the shareholders are probably very happy with John's performance.

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. We identified 5 warning signs for Caldwell Partners International (1 is significant!) that you should be aware of before investing here.

Important note: Caldwell Partners International 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. 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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