Here's Why Pollard Banknote Limited's (TSE:PBL) CEO Compensation Is The Least Of Shareholders Concerns

Key Insights

• Pollard Banknote to hold its Annual General Meeting on 8th of May
• Total pay for CEO John Pollard includes CA$388.9k salary
• The overall pay is 81% below the industry average
• Pollard Banknote's three-year loss to shareholders was 3.0% while its EPS grew by 21% over the past three years

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Performance at Pollard Banknote Limited (TSE:PBL) has been rather uninspiring recently and shareholders may be wondering how CEO John Pollard plans to fix this. At the next AGM coming up on 8th of May, they can influence managerial decision making through voting on resolutions, including executive remuneration. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Check out our latest analysis for Pollard Banknote

Comparing Pollard Banknote Limited's CEO Compensation With The Industry

Our data indicates that Pollard Banknote Limited has a market capitalization of CA$554m, and total annual CEO compensation was reported as CA$573k for the year to December 2024. We note that's a decrease of 17% compared to last year. We note that the salary portion, which stands at CA$388.9k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Canadian Hospitality industry with market caps ranging from CA$277m to CA$1.1b, we found that the median CEO total compensation was CA$3.0m. This suggests that John Pollard is paid below the industry median. What's more, John Pollard holds CA$115m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 77% of total compensation out of all the companies we analyzed, while other remuneration made up 23% of the pie. Pollard Banknote pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Pollard Banknote Limited's Growth

Over the past three years, Pollard Banknote Limited has seen its earnings per share (EPS) grow by 21% per year. Its revenue is up 7.0% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Pollard Banknote Limited Been A Good Investment?

Since shareholders would have lost about 3.0% over three years, some Pollard Banknote Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The uninspiring share price returns contrasts with the strong EPS growth, suggesting that there may be other factors at play causing it to diverge from fundamentals. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Pollard Banknote.

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. 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.