Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Laurie Goldberg has been the CEO of People Corporation (CVE:PEO) since 2005. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Laurie Goldberg’s Compensation Compare With Similar Sized Companies?
Our data indicates that People Corporation is worth CA$487m, and total annual CEO compensation is CA$4.1m. (This figure is for the year to August 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$450k. When we examined a selection of companies with market caps ranging from CA$263m to CA$1.1b, we found the median CEO total compensation was CA$1.4m.
As you can see, Laurie Goldberg is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean People Corporation is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at People, below.
Is People Corporation Growing?
People Corporation has reduced its earnings per share by an average of 80% a year, over the last three years (measured with a line of best fit). Its revenue is up 24% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
Has People Corporation Been A Good Investment?
Boasting a total shareholder return of 154% over three years, People Corporation 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.
We examined the amount People Corporation pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.Earnings per share have not grown in three years, and the revenue growth fails to impress us.
On the other hand, returns have been good, so the company is doing something right. So on this analysis we’d stop short of criticizing the level of CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling People (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.