Here's Why Happy Belly Food Group Inc.'s (CSE:HBFG) CEO Compensation Is The Least Of Shareholders Concerns

Key Insights

• Happy Belly Food Group to hold its Annual General Meeting on 28th of December
• CEO Shawn Moniz's total compensation includes salary of CA$150.0k
• The overall pay is 57% below the industry average
• Happy Belly Food Group's three-year loss to shareholders was 56% while its EPS grew by 51% over the past three years

The performance at Happy Belly Food Group Inc. (CSE:HBFG) has been rather lacklustre of late and shareholders may be wondering what CEO Shawn Moniz is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 28th of December. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

View our latest analysis for Happy Belly Food Group

How Does Total Compensation For Shawn Moniz Compare With Other Companies In The Industry?

At the time of writing, our data shows that Happy Belly Food Group Inc. has a market capitalization of CA$23m, and reported total annual CEO compensation of CA$150k for the year to December 2022. There was no change in the compensation compared to last year. Notably, the salary of CA$150k is the entirety of the CEO compensation.

For comparison, other companies in the Canadian Food industry with market capitalizations below CA$266m, reported a median total CEO compensation of CA$350k. That is to say, Shawn Moniz is paid under the industry median. Moreover, Shawn Moniz also holds CA$256k worth of Happy Belly Food Group stock directly under their own name.

Component	2022	2021	Proportion (2022)
Salary	CA$150k	CA$150k	100%
Other	-	-	-
Total Compensation	CA$150k	CA$150k	100%

Talking in terms of the industry, salary represented approximately 70% of total compensation out of all the companies we analyzed, while other remuneration made up 30% of the pie. Speaking on a company level, Happy Belly Food Group prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Happy Belly Food Group Inc.'s Growth

Happy Belly Food Group Inc.'s earnings per share (EPS) grew 51% per year over the last three years. It achieved revenue growth of 147% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Happy Belly Food Group Inc. Been A Good Investment?

Few Happy Belly Food Group Inc. shareholders would feel satisfied with the return of -56% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Happy Belly Food Group pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The loss to shareholders over the past three years is certainly concerning. This diverges with the robust growth in EPS, suggesting that there is a large discrepancy between share price and fundamentals. A key focus for the board and management will be how to align the share price with fundamentals. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

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 1 which is concerning) in Happy Belly Food Group 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.