Shareholders May Be More Conservative With Canaccord Genuity Group Inc.'s (TSE:CF) CEO Compensation For Now

Key Insights

• Canaccord Genuity Group's Annual General Meeting to take place on 8th of August
• CEO Dan Daviau's total compensation includes salary of CA$1.00m
• Total compensation is 156% above industry average
• Canaccord Genuity Group's total shareholder return over the past three years was 38% while its EPS was down 73% over the past three years

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Under the guidance of CEO Dan Daviau, Canaccord Genuity Group Inc. (TSE:CF) has performed reasonably well recently. As shareholders go into the upcoming AGM on 8th of August, 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.

Check out our latest analysis for Canaccord Genuity Group

Comparing Canaccord Genuity Group Inc.'s CEO Compensation With The Industry

According to our data, Canaccord Genuity Group Inc. has a market capitalization of CA$1.0b, and paid its CEO total annual compensation worth CA$9.1m over the year to March 2025. That's a notable increase of 73% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$1.0m.

For comparison, other companies in the Canadian Capital Markets industry with market capitalizations ranging between CA$552m and CA$2.2b had a median total CEO compensation of CA$3.6m. This suggests that Dan Daviau is paid more than the median for the industry. What's more, Dan Daviau holds CA$42m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 34% of total compensation represents salary and 66% is other remuneration. Canaccord Genuity Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Canaccord Genuity Group Inc.'s Growth

Over the last three years, Canaccord Genuity Group Inc. has shrunk its earnings per share by 73% per year. Its revenue is up 18% over the last year.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Canaccord Genuity Group Inc. Been A Good Investment?

We think that the total shareholder return of 38%, over three years, would leave most Canaccord Genuity Group Inc. shareholders smiling. 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...

Some shareholders will be pleased by the relatively good results, however, the results could still be improved. EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Canaccord Genuity Group you should be aware of, and 1 of them is a bit concerning.

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.