Jim Rakievich became the CEO of McCoy Global Inc. (TSE:MCB) in 2002, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for McCoy Global.
See our latest analysis for McCoy Global
How Does Total Compensation For Jim Rakievich Compare With Other Companies In The Industry?
At the time of writing, our data shows that McCoy Global Inc. has a market capitalization of CA$12m, and reported total annual CEO compensation of CA$583k for the year to December 2019. Notably, that's a decrease of 11% over the year before. In particular, the salary of CA$400.0k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below CA$263m, reported a median total CEO compensation of CA$898k. This suggests that Jim Rakievich is paid below the industry median. What's more, Jim Rakievich holds CA$289k worth of shares in the company in their own name.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | CA$400k | CA$375k | 69% |
| Other | CA$183k | CA$278k | 31% |
| Total Compensation | CA$583k | CA$653k | 100% |
On an industry level, around 37% of total compensation represents salary and 63% is other remuneration. McCoy Global pays out 69% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at McCoy Global Inc.'s Growth Numbers
McCoy Global Inc. has seen its earnings per share (EPS) increase by 97% a year over the past three years. Its revenue is down 9.2% over the previous year.
Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has McCoy Global Inc. Been A Good Investment?
With a three year total loss of 76% for the shareholders, McCoy Global Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
In Summary...
As we touched on above, McCoy Global Inc. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, the company has impressed with its EPS growth over three years. It's tough to criticize CEO compensation when the per-share EPS movement is positive. But shareholders will likely want to hold off on any raise for Jim until investor returns are positive.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for McCoy Global that you should be aware of before investing.
Important note: McCoy Global is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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About TSX:MCB
McCoy Global
Provides equipment and technologies to support tubular running operations that enhance wellbore integrity and assist with collecting critical data for the energy industry.
Flawless balance sheet and fair value.
