How Should Investors Feel About TWC Enterprises' (TSE:TWC) CEO Remuneration?

Kuldip Sahi became the CEO of TWC Enterprises Limited (TSE:TWC) in 1997, and we think it's a good time to look at 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 TWC Enterprises.

View our latest analysis for TWC Enterprises

Comparing TWC Enterprises Limited's CEO Compensation With the industry

Our data indicates that TWC Enterprises Limited has a market capitalization of CA$409m, and total annual CEO compensation was reported as CA$364k for the year to December 2019. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at CA$280.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between CA$259m and CA$1.0b had a median total CEO compensation of CA$2.2m. This suggests that Kuldip Sahi is paid below the industry median. Furthermore, Kuldip Sahi directly owns CA$316m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 72% of total compensation represents salary, while the remainder of 28% is other remuneration. TWC Enterprises is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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.

TWC Enterprises Limited's Growth

TWC Enterprises Limited has seen its earnings per share (EPS) increase by 27% a year over the past three years. It saw its revenue drop 23% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has TWC Enterprises Limited Been A Good Investment?

Boasting a total shareholder return of 41% over three years, TWC Enterprises Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

As we touched on above, TWC Enterprises Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Considering robust EPS growth, we believe Kuldip to be modestly paid. Given the strong history of shareholder returns, the shareholders are probably very happy with Kuldip's performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which doesn't sit too well with us) in TWC Enterprises we think you should know about.

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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