Pason Systems Inc.'s (TSE:PSI) CEO Looks Due For A Compensation Raise

Key Insights

• Pason Systems to hold its Annual General Meeting on 2nd of May
• Salary of CA$485.0k is part of CEO Jon Faber's total remuneration
• The total compensation is 56% less than the average for the industry
• Pason Systems' EPS grew by 150% over the past three years while total shareholder return over the past three years was 88%

The solid performance at Pason Systems Inc. (TSE:PSI) has been impressive and shareholders will probably be pleased to know that CEO Jon Faber has delivered. This would be kept in mind at the upcoming AGM on 2nd of May which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. 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.

View our latest analysis for Pason Systems

How Does Total Compensation For Jon Faber Compare With Other Companies In The Industry?

Our data indicates that Pason Systems Inc. has a market capitalization of CA$1.3b, and total annual CEO compensation was reported as CA$2.0m for the year to December 2023. We note that's a small decrease of 4.5% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$485k.

On comparing similar companies from the Canadian Energy Services industry with market caps ranging from CA$547m to CA$2.2b, we found that the median CEO total compensation was CA$4.5m. This suggests that Jon Faber is paid below the industry median. What's more, Jon Faber holds CA$683k worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	CA$485k	CA$465k	24%
Other	CA$1.5m	CA$1.6m	76%
Total Compensation	CA$2.0m	CA$2.1m	100%

On an industry level, roughly 23% of total compensation represents salary and 77% is other remuneration. There isn't a significant difference between Pason Systems and the broader market, in terms of salary allocation in the overall compensation package. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Pason Systems Inc.'s Growth

Over the past three years, Pason Systems Inc. has seen its earnings per share (EPS) grow by 150% per year. It achieved revenue growth of 10% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Pason Systems Inc. Been A Good Investment?

We think that the total shareholder return of 88%, over three years, would leave most Pason Systems Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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 Pason Systems that you should be aware of before investing.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.