Stock Analysis

Does International Parkside Products' (CVE:IPD) CEO Salary Compare Well With Industry Peers?

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Murray Keating has been the CEO of International Parkside Products Inc. (CVE:IPD) since 2008, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether International Parkside Products pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for International Parkside Products

Comparing International Parkside Products Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that International Parkside Products Inc. has a market capitalization of CA$1.3m, and reported total annual CEO compensation of CA$161k for the year to July 2020. That's mostly flat as compared to the prior year's compensation. In particular, the salary of CA$144.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below CA$252m, we found that the median total CEO compensation was CA$393k. In other words, International Parkside Products pays its CEO lower than the industry median. Moreover, Murray Keating also holds CA$269k worth of International Parkside Products stock directly under their own name.

Component20202019Proportion (2020)
Salary CA$144k CA$144k 89%
Other CA$17k CA$21k 11%
Total CompensationCA$161k CA$165k100%

On an industry level, around 32% of total compensation represents salary and 68% is other remuneration. International Parkside Products pays out 89% 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.

TSXV:IPD CEO Compensation February 24th 2021

International Parkside Products Inc.'s Growth

Over the last three years, International Parkside Products Inc. has shrunk its earnings per share by 22% per year. It saw its revenue drop 17% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has International Parkside Products Inc. Been A Good Investment?

With a three year total loss of 46% for the shareholders, International Parkside Products Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we noted earlier, International Parkside Products pays its CEO lower than the norm for similar-sized companies belonging to the same industry. While we are quite underwhelmed with EPS growth, the shareholder returns over the past three years have also failed to impress us. Although we wouldn’t say CEO compensation is high, it’s tough to foresee shareholders warming up to thoughts of a bump anytime soon.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for International Parkside Products (of which 2 are significant!) that you should know about in order to have a holistic understanding of the stock.

Important note: International Parkside Products 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.

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