This Is Why We Think goeasy Ltd.'s (TSE:GSY) CEO Might Get A Pay Rise Approved By Shareholders

Key Insights

• goeasy will host its Annual General Meeting on 8th of May
• Salary of CA$646.0k is part of CEO Jason Mullins's total remuneration
• The total compensation is 60% less than the average for the industry
• goeasy's total shareholder return over the past three years was 28% while its EPS grew by 17% over the past three years

The decent performance at goeasy Ltd. (TSE:GSY) recently will please most shareholders as they go into the AGM coming up on 8th of May. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

See our latest analysis for goeasy

How Does Total Compensation For Jason Mullins Compare With Other Companies In The Industry?

At the time of writing, our data shows that goeasy Ltd. has a market capitalization of CA$2.9b, and reported total annual CEO compensation of CA$3.9m for the year to December 2023. Notably, that's an increase of 8.8% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$646k.

For comparison, other companies in the Canada Consumer Finance industry with market capitalizations ranging between CA$1.4b and CA$4.4b had a median total CEO compensation of CA$9.8m. In other words, goeasy pays its CEO lower than the industry median. What's more, Jason Mullins holds CA$18m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	CA$646k	CA$600k	17%
Other	CA$3.2m	CA$3.0m	83%
Total Compensation	CA$3.9m	CA$3.6m	100%

Speaking on an industry level, nearly 48% of total compensation represents salary, while the remainder of 52% is other remuneration. goeasy pays a modest slice of remuneration through salary, as compared to the broader 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 goeasy Ltd.'s Growth Numbers

Over the past three years, goeasy Ltd. has seen its earnings per share (EPS) grow by 17% per year. It achieved revenue growth of 17% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 goeasy Ltd. Been A Good Investment?

goeasy Ltd. has served shareholders reasonably well, with a total return of 28% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

The company's overall performance, while not bad, could be better. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for goeasy (of which 2 are a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from goeasy, 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. 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.