GDI Integrated Facility Services Inc.'s (TSE:GDI) CEO Looks Like They Deserve Their Pay Packet

We have been pretty impressed with the performance at GDI Integrated Facility Services Inc. (TSE:GDI) recently and CEO Claude Bigras deserves a mention for their role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 07 May 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for GDI Integrated Facility Services

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

According to our data, GDI Integrated Facility Services Inc. has a market capitalization of CA$1.3b, and paid its CEO total annual compensation worth CA$3.3m over the year to December 2020. We note that's an increase of 52% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$751k.

On comparing similar companies from the same industry with market caps ranging from CA$495m to CA$2.0b, we found that the median CEO total compensation was CA$3.8m. This suggests that GDI Integrated Facility Services remunerates its CEO largely in line with the industry average. What's more, Claude Bigras holds CA$155m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	CA$751k	CA$678k	23%
Other	CA$2.5m	CA$1.5m	77%
Total Compensation	CA$3.3m	CA$2.2m	100%

Speaking on an industry level, nearly 63% of total compensation represents salary, while the remainder of 37% is other remuneration. It's interesting to note that GDI Integrated Facility Services allocates a smaller portion of compensation to salary 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.

A Look at GDI Integrated Facility Services Inc.'s Growth Numbers

Over the past three years, GDI Integrated Facility Services Inc. has seen its earnings per share (EPS) grow by 62% per year. Its revenue is up 9.8% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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?

We think that the total shareholder return of 232%, over three years, would leave most GDI Integrated Facility Services 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.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 3 warning signs for GDI Integrated Facility Services that investors should be aware of in a dynamic business environment.

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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