Here's Why Shareholders Will Not Be Complaining About Propel Holdings Inc.'s (TSE:PRL) CEO Pay Packet

Key Insights

• Propel Holdings to hold its Annual General Meeting on 5th of June
• Salary of US$591.2k is part of CEO Clive Kinross's total remuneration
• The total compensation is similar to the average for the industry
• Propel Holdings' total shareholder return over the past three years was 373% while its EPS grew by 110% over the past three years

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We have been pretty impressed with the performance at Propel Holdings Inc. (TSE:PRL) recently and CEO Clive Kinross deserves a mention for their role in it. Coming up to the next AGM on 5th of June, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for Propel Holdings

Comparing Propel Holdings Inc.'s CEO Compensation With The Industry

Our data indicates that Propel Holdings Inc. has a market capitalization of CA$1.2b, and total annual CEO compensation was reported as US$4.7m for the year to December 2024. That's a notable increase of 84% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$591k.

On examining similar-sized companies in the Canada Consumer Finance industry with market capitalizations between CA$553m and CA$2.2b, we discovered that the median CEO total compensation of that group was US$4.7m. This suggests that Propel Holdings remunerates its CEO largely in line with the industry average. Moreover, Clive Kinross also holds CA$163m worth of Propel Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. Our data reveals that Propel Holdings allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Propel Holdings Inc.'s Growth

Propel Holdings Inc.'s earnings per share (EPS) grew 110% per year over the last three years. Its revenue is up 42% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Propel Holdings Inc. Been A Good Investment?

Boasting a total shareholder return of 373% over three years, Propel Holdings Inc. 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...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them 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. We did our research and identified 4 warning signs (and 2 which don't sit too well with us) in Propel Holdings we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.