We Think The Compensation For Guardian Capital Group Limited's (TSE:GCG.A) CEO Looks About Right

Under the guidance of CEO George Mavroudis, Guardian Capital Group Limited (TSE:GCG.A) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 13 May 2021. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

View our latest analysis for Guardian Capital Group

Comparing Guardian Capital Group Limited's CEO Compensation With the industry

According to our data, Guardian Capital Group Limited has a market capitalization of CA$776m, and paid its CEO total annual compensation worth CA$2.7m over the year to December 2020. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$500k.

For comparison, other companies in the same industry with market capitalizations ranging between CA$488m and CA$2.0b had a median total CEO compensation of CA$3.7m. So it looks like Guardian Capital Group compensates George Mavroudis in line with the median for the industry. Moreover, George Mavroudis also holds CA$2.7m worth of Guardian Capital Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	CA$500k	CA$500k	18%
Other	CA$2.2m	CA$2.2m	82%
Total Compensation	CA$2.7m	CA$2.7m	100%

Speaking on an industry level, nearly 61% of total compensation represents salary, while the remainder of 39% is other remuneration. Guardian Capital Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Guardian Capital Group Limited's Growth Numbers

Over the last three years, Guardian Capital Group Limited has shrunk its earnings per share by 22% per year. It achieved revenue growth of 16% over the last year.

The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. 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 Guardian Capital Group Limited Been A Good Investment?

Boasting a total shareholder return of 35% over three years, Guardian Capital Group 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.

To Conclude...

Some shareholders will be pleased by the relatively good results, however, the results could still be improved. Despite robust revenue growth, until EPS growth improves, shareholders may be hesitant to increase CEO pay by too much.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for Guardian Capital Group (1 can't be ignored!) that you should be aware of before investing here.

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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