This Is The Reason Why We Think Pollard Banknote Limited's (TSE:PBL) CEO Deserves A Bump Up To Their Compensation

Shareholders will be pleased by the impressive results for Pollard Banknote Limited (TSE:PBL) recently and CEO John Pollard has played a key role. This would be kept in mind at the upcoming AGM on 14 May 2021 which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

View 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$1.5b, and total annual CEO compensation was reported as CA$351k for the year to December 2020. This means that the compensation hasn't changed much from last year. Notably, the salary which is CA$289.2k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations ranging from CA$1.2b to CA$3.9b, the reported median CEO total compensation was CA$4.7m. Accordingly, Pollard Banknote pays its CEO under the industry median.

Component	2020	2019	Proportion (2020)
Salary	CA$289k	CA$289k	83%
Other	CA$61k	CA$51k	17%
Total Compensation	CA$351k	CA$340k	100%

On an industry level, around 63% of total compensation represents salary and 37% is other remuneration. According to our research, Pollard Banknote has allocated a higher percentage of pay to salary in comparison to the wider industry. 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.

Pollard Banknote Limited's Growth

Over the past three years, Pollard Banknote Limited has seen its earnings per share (EPS) grow by 22% per year. In the last year, its revenue is up 4.1%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Pollard Banknote Limited Been A Good Investment?

Boasting a total shareholder return of 161% over three years, Pollard Banknote Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 5 warning signs for Pollard Banknote that investors should look into moving forward.

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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