BRP Inc.'s (TSE:DOO) CEO Looks Like They Deserve Their Pay Packet

The performance at BRP Inc. (TSE:DOO) has been quite strong recently and CEO Jose Boisjoli has played a role in it. Coming up to the next AGM on 03 June 2021, shareholders would be keeping this in mind. 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 BRP

Comparing BRP Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that BRP Inc. has a market capitalization of CA$8.5b, and reported total annual CEO compensation of CA$8.5m for the year to January 2021. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$1.1m.

In comparison with other companies in the industry with market capitalizations ranging from CA$4.8b to CA$15b, the reported median CEO total compensation was CA$6.8m. This suggests that BRP remunerates its CEO largely in line with the industry average. What's more, Jose Boisjoli holds CA$103m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 18% of total compensation represents salary and 82% is other remuneration. In BRP's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at BRP Inc.'s Growth Numbers

Over the past three years, BRP Inc. has seen its earnings per share (EPS) grow by 23% per year. It saw its revenue drop 1.6% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has BRP Inc. Been A Good Investment?

Most shareholders would probably be pleased with BRP Inc. for providing a total return of 70% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in 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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for BRP (1 is a bit unpleasant!) that you should be aware of before investing here.

Important note: BRP is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

When trading stocks or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.