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

Performance at The Caldwell Partners International Inc. (TSE:CWL) has been reasonably good and CEO John Wallace has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 21 February 2023, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

See 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$35m, and total annual CEO compensation was reported as CA$1.2m for the year to August 2022. We note that's a decrease of 8.1% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$465k.

For comparison, other companies in the Canada Professional Services industry with market capitalizations below CA$267m, reported a median total CEO compensation of CA$443k. This suggests that John Wallace is paid more than the median for the industry. Furthermore, John Wallace directly owns CA$1.0m worth of shares in the company.

Component	2022	2021	Proportion (2022)
Salary	CA$465k	CA$465k	38%
Other	CA$765k	CA$873k	62%
Total Compensation	CA$1.2m	CA$1.3m	100%

Talking in terms of the industry, salary represented approximately 31% of total compensation out of all the companies we analyzed, while other remuneration made up 69% of the pie. According to our research, Caldwell Partners International has allocated a higher percentage of pay to salary in comparison to the wider 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

Over the past three years, The Caldwell Partners International Inc. has seen its earnings per share (EPS) grow by 68% per year. In the last year, its revenue changed by just 0.9%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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?

With a total shareholder return of 9.7% over three years, The Caldwell Partners International Inc. has done okay by shareholders, but there's always room for improvement. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

In Summary...

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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Caldwell Partners International that investors should think about before committing capital to this stock.

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. 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.