Stock Analysis

The Caldwell Partners International Inc.'s (TSE:CWL) CEO Compensation Is Looking A Bit Stretched At The Moment

TSX:CWL
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CEO John Wallace has done a decent job of delivering relatively good performance at The Caldwell Partners International Inc. (TSE:CWL) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 22 February 2022. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Caldwell Partners International

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

According to our data, The Caldwell Partners International Inc. has a market capitalization of CA$48m, and paid its CEO total annual compensation worth CA$1.3m over the year to August 2021. That's slightly lower by 4.1% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$465k.

For comparison, other companies in the industry with market capitalizations below CA$255m, reported a median total CEO compensation of CA$317k. Accordingly, our analysis reveals that The Caldwell Partners International Inc. pays John Wallace north of the industry median. What's more, John Wallace holds CA$1.4m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20212020Proportion (2021)
Salary CA$465k CA$465k 35%
Other CA$873k CA$930k 65%
Total CompensationCA$1.3m CA$1.4m100%

Talking in terms of the broader industry, salary and other compensation roughly make up 50% each, of the total compensation. In Caldwell Partners International's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
TSX:CWL CEO Compensation February 16th 2022

The Caldwell Partners International Inc.'s Growth

Over the past three years, The Caldwell Partners International Inc. has seen its earnings per share (EPS) grow by 24% per year. In the last year, its revenue is up 143%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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?

We think that the total shareholder return of 45%, over three years, would leave most The Caldwell Partners International Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 4 warning signs for Caldwell Partners International that investors should think about before committing capital to this 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.

Valuation is complex, but we're helping make it simple.

Find out whether Caldwell Partners International is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.