Shareholders Will Probably Not Have Any Issues With McCoy Global Inc.'s (TSE:MCB) CEO Compensation

Performance at McCoy Global Inc. (TSE:MCB) has been rather uninspiring recently and shareholders may be wondering how CEO Jim Rakievich plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 01 June 2021. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. In our opinion, CEO compensation does not look excessive and we discuss why.

Check out 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$18m, and reported total annual CEO compensation of CA$389k for the year to December 2020. Notably, that's a decrease of 33% over the year before. We note that the salary portion, which stands at CA$350.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below CA$242m, we found that the median total CEO compensation was CA$612k. In other words, McCoy Global pays its CEO lower than the industry median. Moreover, Jim Rakievich also holds CA$462k worth of McCoy Global stock directly under their own name.

Component	2020	2019	Proportion (2020)
Salary	CA$350k	CA$400k	90%
Other	CA$39k	CA$183k	10%
Total Compensation	CA$389k	CA$583k	100%

On an industry level, around 38% of total compensation represents salary and 62% is other remuneration. McCoy Global is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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

Over the past three years, McCoy Global Inc. has seen its earnings per share (EPS) grow by 107% per year. Its revenue is down 30% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has McCoy Global Inc. Been A Good Investment?

The return of -53% over three years would not have pleased McCoy Global Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The fact that shareholders have earned a negative share price return is certainly disconcerting. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for McCoy Global that you should be aware of before investing.

Switching gears from McCoy Global, 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. 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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