The CEO of Organic Garage Ltd. (CVE:OG) is Matt Lurie, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Organic Garage.
View our latest analysis for Organic Garage
How Does Total Compensation For Matt Lurie Compare With Other Companies In The Industry?
At the time of writing, our data shows that Organic Garage Ltd. has a market capitalization of CA$19m, and reported total annual CEO compensation of CA$149k for the year to January 2020. This means that the compensation hasn't changed much from last year. Notably, the salary of CA$149k is the entirety of the CEO compensation.
In comparison with other companies in the industry with market capitalizations under CA$253m, the reported median total CEO compensation was CA$165k. So it looks like Organic Garage compensates Matt Lurie in line with the median for the industry. What's more, Matt Lurie holds CA$3.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | CA$149k | CA$148k | 100% |
| Other | - | - | - |
| Total Compensation | CA$149k | CA$148k | 100% |
Talking in terms of the industry, salary represented approximately 20% of total compensation out of all the companies we analyzed, while other remuneration made up 80% of the pie. Speaking on a company level, Organic Garage prefers to tread along a traditional path, disbursing all compensation through a salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Organic Garage Ltd.'s Growth Numbers
Over the last three years, Organic Garage Ltd. has shrunk its earnings per share by 41% per year. It achieved revenue growth of 13% over the last year.
The decline in EPS is a bit concerning. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for us to put aside my concerns around EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Organic Garage Ltd. Been A Good Investment?
Boasting a total shareholder return of 75% over three years, Organic Garage Ltd. 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.
In Summary...
Organic Garage pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As previously discussed, Matt is compensated close to the median for companies of its size, and which belong to the same industry. This isn't great when you look at it against the backdrop of EPS growth, which has been negative for the past three years. On the other hand, shareholder returns are showing positive trends over the same time frame. We're not saying CEO compensation is too generous, but shareholders will probably want to see an increase in EPS before agreeing the business should pay any more.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 3 warning signs for Organic Garage that investors should be aware of in a dynamic business environment.
Switching gears from Organic Garage, 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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About TSXV:OG.H
Oragin Foods
Owns and operates grocery stores that sell natural and organic products to consumers in Canada.
Low with weak fundamentals.
