Why We Think Spin Master Corp.'s (TSE:TOY) CEO Compensation Is Not Excessive At All

Key Insights

• Spin Master's Annual General Meeting to take place on 1st of May
• Salary of US$973.0k is part of CEO Max Rangel's total remuneration
• Total compensation is 45% below industry average
• Spin Master's EPS declined by 25% over the past three years while total shareholder loss over the past three years was 47%

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Shareholders may be wondering what CEO Max Rangel plans to do to improve the less than great performance at Spin Master Corp. (TSE:TOY) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 1st of May. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for Spin Master

Comparing Spin Master Corp.'s CEO Compensation With The Industry

According to our data, Spin Master Corp. has a market capitalization of CA$2.3b, and paid its CEO total annual compensation worth US$5.0m over the year to December 2024. That's a notable decrease of 33% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$973k.

For comparison, other companies in the Canada Leisure industry with market capitalizations ranging between CA$1.4b and CA$4.4b had a median total CEO compensation of US$9.0m. This suggests that Max Rangel is paid below the industry median. Moreover, Max Rangel also holds CA$3.3m worth of Spin Master stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 22% of total compensation out of all the companies we analyzed, while other remuneration made up 78% of the pie. Spin Master pays a modest slice of remuneration through salary, as compared 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.

Spin Master Corp.'s Growth

Over the last three years, Spin Master Corp. has shrunk its earnings per share by 25% per year. Its revenue is up 19% over the last year.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Spin Master Corp. Been A Good Investment?

Few Spin Master Corp. shareholders would feel satisfied with the return of -47% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The loss to shareholders over the past three years is certainly concerning. The downward trend in share price performance may be attributable to the the fact that earnings growth has gone backwards. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Spin Master that investors should think about before committing capital to this stock.

Switching gears from Spin Master, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.