This Is Why Vertex Resource Group Ltd.'s (CVE:VTX) CEO Compensation Looks Appropriate

Key Insights

• Vertex Resource Group will host its Annual General Meeting on 15th of May
• Salary of CA$250.0k is part of CEO Terry Stephenson's total remuneration
• The overall pay is comparable to the industry average
• Vertex Resource Group's total shareholder return over the past three years was 14% while its EPS grew by 82% over the past three years

CEO Terry Stephenson has done a decent job of delivering relatively good performance at Vertex Resource Group Ltd. (CVE:VTX) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 15th of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for Vertex Resource Group

Comparing Vertex Resource Group Ltd.'s CEO Compensation With The Industry

At the time of writing, our data shows that Vertex Resource Group Ltd. has a market capitalization of CA$43m, and reported total annual CEO compensation of CA$400k for the year to December 2023. We note that's an increase of 13% above last year. In particular, the salary of CA$250.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Canadian Commercial Services industry with market capitalizations below CA$275m, reported a median total CEO compensation of CA$476k. So it looks like Vertex Resource Group compensates Terry Stephenson in line with the median for the industry. What's more, Terry Stephenson holds CA$6.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	CA$250k	CA$250k	63%
Other	CA$150k	CA$105k	38%
Total Compensation	CA$400k	CA$355k	100%

Talking in terms of the industry, salary represented approximately 45% of total compensation out of all the companies we analyzed, while other remuneration made up 55% of the pie. Vertex Resource Group pays out 63% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Vertex Resource Group Ltd.'s Growth Numbers

Vertex Resource Group Ltd. has seen its earnings per share (EPS) increase by 82% a year over the past three years. Its revenue is up 13% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Vertex Resource Group Ltd. Been A Good Investment?

With a total shareholder return of 14% over three years, Vertex Resource Group Ltd. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 2 warning signs (and 1 which is potentially serious) in Vertex Resource Group we think you should know about.

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.

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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.