Why We Think Shareholders May Be Considering Bumping Up McCoy Global Inc.'s (TSE:MCB) CEO Compensation

Key Insights

• McCoy Global's Annual General Meeting to take place on 9th of May
• Total pay for CEO Jim Rakievich includes CA$400.0k salary
• The overall pay is 36% below the industry average
• McCoy Global's total shareholder return over the past three years was 195% while its EPS grew by 86% over the past three years

The solid performance at McCoy Global Inc. (TSE:MCB) has been impressive and shareholders will probably be pleased to know that CEO Jim Rakievich has delivered. At the upcoming AGM on 9th of May, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

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$51m, and reported total annual CEO compensation of CA$657k for the year to December 2023. We note that's an increase of 24% above last year. We note that the salary portion, which stands at CA$400.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Canadian Energy Services industry with market capitalizations below CA$274m, we found that the median total CEO compensation was CA$1.0m. That is to say, Jim Rakievich is paid under the industry median. What's more, Jim Rakievich holds CA$1.8m 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$400k	CA$369k	61%
Other	CA$257k	CA$161k	39%
Total Compensation	CA$657k	CA$530k	100%

On an industry level, around 23% of total compensation represents salary and 77% is other remuneration. McCoy Global pays out 61% 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.

McCoy Global Inc.'s Growth

McCoy Global Inc.'s earnings per share (EPS) grew 86% per year over the last three years. Its revenue is up 33% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has McCoy Global Inc. Been A Good Investment?

Most shareholders would probably be pleased with McCoy Global Inc. for providing a total return of 195% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

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 3 warning signs for McCoy Global that investors should think about before committing capital to this stock.

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. 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.