Does People Corporation's (CVE:PEO) CEO Pay Reflect Performance?

Laurie Goldberg has been the CEO of People Corporation (CVE:PEO) since 2005. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for People

How Does Laurie Goldberg's Compensation Compare With Similar Sized Companies?

Our data indicates that People Corporation is worth CA$686m, and total annual CEO compensation was reported as CA$981k for the year to August 2019. We think total compensation is more important but we note that the CEO salary is lower, at CA$450k. We looked at a group of companies with market capitalizations from CA$267m to CA$1.1b, and the median CEO total compensation was CA$1.4m.

That means Laurie Goldberg receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at People has changed over time.

Is People Corporation Growing?

Over the last three years People Corporation has shrunk its earnings per share by an average of 81% per year (measured with a line of best fit). Its revenue is up 23% over last year.

Sadly for shareholders, earnings per share are actually down, over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.

Has People Corporation Been A Good Investment?

I think that the total shareholder return of 123%, over three years, would leave most People Corporation 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...

Laurie Goldberg is paid around what is normal for the leaders of comparable size companies.

The company isn't growing earnings per share, but shareholder returns have been strong over the last three years. So we can't see a reason to suggest the pay is inappropriate. Shareholders may want to check for free if People insiders are buying or selling shares.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

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