Increases to Canaccord Genuity Group Inc.'s (TSE:CF) CEO Compensation Might Cool off for now

CEO Dan Daviau has done a decent job of delivering relatively good performance at Canaccord Genuity Group Inc. (TSE:CF) recently. As shareholders go into the upcoming AGM on 05 August 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Canaccord Genuity Group

How Does Total Compensation For Dan Daviau Compare With Other Companies In The Industry?

At the time of writing, our data shows that Canaccord Genuity Group Inc. has a market capitalization of CA$1.3b, and reported total annual CEO compensation of CA$13m for the year to March 2021. Notably, that's an increase of 70% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$850k.

On examining similar-sized companies in the industry with market capitalizations between CA$498m and CA$2.0b, we discovered that the median CEO total compensation of that group was CA$3.6m. Hence, we can conclude that Dan Daviau is remunerated higher than the industry median. Moreover, Dan Daviau also holds CA$41m worth of Canaccord Genuity Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2021	2020	Proportion (2021)
Salary	CA$850k	CA$850k	7%
Other	CA$12m	CA$6.8m	93%
Total Compensation	CA$13m	CA$7.7m	100%

Talking in terms of the industry, salary represented approximately 44% of total compensation out of all the companies we analyzed, while other remuneration made up 56% of the pie. Canaccord Genuity Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Canaccord Genuity Group Inc.'s Growth

Canaccord Genuity Group Inc. has seen its earnings per share (EPS) increase by 296% a year over the past three years. In the last year, its revenue is up 66%.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Canaccord Genuity Group Inc. Been A Good Investment?

We think that the total shareholder return of 115%, over three years, would leave most Canaccord Genuity Group Inc. shareholders smiling. 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...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Canaccord Genuity Group that investors should look into moving forward.

Switching gears from Canaccord Genuity Group, 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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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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