We have been pretty impressed with the performance at Empire Company Limited (TSE:EMP.A) recently and CEO Mike Medline deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 09 September 2021. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
Comparing Empire Company Limited's CEO Compensation With the industry
Our data indicates that Empire Company Limited has a market capitalization of CA$11b, and total annual CEO compensation was reported as CA$7.5m for the year to May 2021. We note that's a decrease of 43% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$1.1m.
In comparison with other companies in the industry with market capitalizations ranging from CA$5.0b to CA$15b, the reported median CEO total compensation was CA$7.5m. This suggests that Empire remunerates its CEO largely in line with the industry average. Furthermore, Mike Medline directly owns CA$4.4m worth of shares in the company, implying that they are deeply invested in the company's success.
Speaking on an industry level, nearly 24% of total compensation represents salary, while the remainder of 76% is other remuneration. It's interesting to note that Empire allocates a smaller portion of compensation to salary 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.
Empire Company Limited's Growth
Empire Company Limited has seen its earnings per share (EPS) increase by 65% a year over the past three years. It achieved revenue growth of 6.2% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Empire Company Limited Been A Good Investment?
Boasting a total shareholder return of 67% over three years, Empire Company Limited has done well by shareholders. 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.
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.
Shareholders may want to check for free if Empire insiders are buying or selling shares.
Switching gears from Empire, 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.
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