Joey St-Aubin has been the CEO of Canlan Ice Sports Corp. (TSE:ICE) since 2009, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Canlan Ice Sports pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Joey St-Aubin Compare With Other Companies In The Industry?
At the time of writing, our data shows that Canlan Ice Sports Corp. has a market capitalization of CA$47m, and reported total annual CEO compensation of CA$364k for the year to December 2019. That's a slightly lower by 3.5% over the previous year. In particular, the salary of CA$325.9k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below CA$260m, reported a median total CEO compensation of CA$485k. So it looks like Canlan Ice Sports compensates Joey St-Aubin in line with the median for the industry.
On an industry level, roughly 72% of total compensation represents salary and 28% is other remuneration. Canlan Ice Sports pays out 90% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Canlan Ice Sports Corp.'s Growth Numbers
Over the last three years, Canlan Ice Sports Corp. has shrunk its earnings per share by 44% per year. In the last year, its revenue is down 28%.
Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Canlan Ice Sports Corp. Been A Good Investment?
Given the total shareholder loss of 7.1% over three years, many shareholders in Canlan Ice Sports Corp. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As previously discussed, Joey is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 2 warning signs for Canlan Ice Sports you should be aware of, and 1 of them shouldn't be ignored.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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.
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