Here's Why Shareholders Should Examine Saputo Inc.'s (TSE:SAP) CEO Compensation Package More Closely

Key Insights

• Saputo's Annual General Meeting to take place on 8th of August
• CEO Carl Colizza's total compensation includes salary of CA$1.36m
• Total compensation is similar to the industry average
• Saputo's three-year loss to shareholders was 7.7% while its EPS was down 46% over the past three years

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Shareholders will probably not be too impressed with the underwhelming results at Saputo Inc. (TSE:SAP) recently. At the upcoming AGM on 8th of August, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Saputo

How Does Total Compensation For Carl Colizza Compare With Other Companies In The Industry?

According to our data, Saputo Inc. has a market capitalization of CA$12b, and paid its CEO total annual compensation worth CA$9.9m over the year to March 2025. This was the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$1.4m.

In comparison with other companies in the Canadian Food industry with market capitalizations ranging from CA$5.5b to CA$17b, the reported median CEO total compensation was CA$11m. From this we gather that Carl Colizza is paid around the median for CEOs in the industry. Furthermore, Carl Colizza directly owns CA$2.2m worth of shares in the company.

On an industry level, roughly 57% of total compensation represents salary and 43% is other remuneration. Saputo sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Saputo Inc.'s Growth

Saputo Inc. has reduced its earnings per share by 46% a year over the last three years. Its revenue is up 9.9% over the last year.

The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Saputo Inc. Been A Good Investment?

Given the total shareholder loss of 7.7% over three years, many shareholders in Saputo Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

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 2 warning signs for Saputo 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.