Does GDI Integrated Facility Services' (TSE:GDI) CEO Salary Compare Well With Industry Peers?

Claude Bigras became the CEO of GDI Integrated Facility Services Inc. (TSE:GDI) in 2004, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether GDI Integrated Facility Services pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for GDI Integrated Facility Services

How Does Total Compensation For Claude Bigras Compare With Other Companies In The Industry?

At the time of writing, our data shows that GDI Integrated Facility Services Inc. has a market capitalization of CA$1.0b, and reported total annual CEO compensation of CA$2.2m for the year to December 2019. That's mostly flat as compared to the prior year's compensation. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$678k.

For comparison, other companies in the same industry with market capitalizations ranging between CA$511m and CA$2.0b had a median total CEO compensation of CA$4.0m. In other words, GDI Integrated Facility Services pays its CEO lower than the industry median. Furthermore, Claude Bigras directly owns CA$154m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 61% of total compensation represents salary and 39% is other remuneration. GDI Integrated Facility Services 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.

GDI Integrated Facility Services Inc.'s Growth

GDI Integrated Facility Services Inc.'s earnings per share (EPS) grew 23% per year over the last three years. In the last year, its revenue is up 12%.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has GDI Integrated Facility Services Inc. Been A Good Investment?

Boasting a total shareholder return of 169% over three years, GDI Integrated Facility Services Inc. has done well by shareholders. 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...

As previously discussed, Claude is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. When taking into account the company's strong EPS growth over the past three years, it appears CEO compensation is modest. And given most shareholders are probably very happy with recent shareholder returns, they might even think Claude deserves a raise!

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 2 warning signs for GDI Integrated Facility Services that you should be aware of before investing.

Switching gears from GDI Integrated Facility Services, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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