This Is Why Organic Garage Ltd.'s (CVE:OG) CEO Can Expect A Bump Up In Their Pay Packet

Shareholders will be pleased by the robust performance of Organic Garage Ltd. (CVE:OG) recently and this will be kept in mind in the upcoming AGM on 28 July 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

See our latest analysis for Organic Garage

Comparing Organic Garage Ltd.'s CEO Compensation With the industry

According to our data, Organic Garage Ltd. has a market capitalization of CA$20m, and paid its CEO total annual compensation worth CA$150k over the year to January 2021. That is, the compensation was roughly the same as last year. Notably, the salary of CA$150k is the entirety of the CEO compensation.

In comparison with other companies in the industry with market capitalizations under CA$251m, the reported median total CEO compensation was CA$959k. This suggests that Matt Lurie is paid below the industry median. What's more, Matt Lurie holds CA$2.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2021	2020	Proportion (2021)
Salary	CA$150k	CA$149k	100%
Other	-	-	-
Total Compensation	CA$150k	CA$149k	100%

On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. At the company level, Organic Garage pays Matt Lurie solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Organic Garage Ltd.'s Growth

Organic Garage Ltd. has reduced its earnings per share by 7.6% a year over the last three years. Its revenue is up 15% over the last year.

The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Organic Garage Ltd. Been A Good Investment?

Organic Garage Ltd. has not done too badly by shareholders, with a total return of 3.0%, over three years. It would be nice to see that metric improve in the future. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

Organic Garage rewards its CEO solely through a salary, ignoring non-salary benefits completely. Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 4 warning signs (and 2 which are a bit unpleasant) in Organic Garage we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

If you're looking for stocks to buy, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all 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.