SSC Security Services Corp.'s (CVE:SECU) CEO Looks Like They Deserve Their Pay Packet

We have been pretty impressed with the performance at SSC Security Services Corp. (CVE:SECU) recently and CEO Doug Emsley deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 16 February 2023. 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.

Check out our latest analysis for SSC Security Services

Comparing SSC Security Services Corp.'s CEO Compensation With The Industry

Our data indicates that SSC Security Services Corp. has a market capitalization of CA$59m, and total annual CEO compensation was reported as CA$356k for the year to September 2022. That's just a smallish increase of 7.2% on last year. We note that the salary portion, which stands at CA$250.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Canadian Commercial Services industry with market capitalizations below CA$269m, reported a median total CEO compensation of CA$356k. From this we gather that Doug Emsley is paid around the median for CEOs in the industry. What's more, Doug Emsley holds CA$2.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	CA$250k	CA$229k	70%
Other	CA$106k	CA$103k	30%
Total Compensation	CA$356k	CA$332k	100%

On an industry level, roughly 51% of total compensation represents salary and 49% is other remuneration. SSC Security Services pays out 70% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at SSC Security Services Corp.'s Growth Numbers

SSC Security Services Corp. has seen its earnings per share (EPS) increase by 48% a year over the past three years. In the last year, its revenue is up 171%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has SSC Security Services Corp. Been A Good Investment?

We think that the total shareholder return of 65%, over three years, would leave most SSC Security Services Corp. 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...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 2 warning signs for SSC Security Services (1 is significant!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.