Green Rise Foods Inc.'s (CVE:GRF) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Green Rise Foods to hold its Annual General Meeting on 14th of November
• Salary of CA$150.0k is part of CEO Vincent Narang's total remuneration
• The overall pay is 46% below the industry average
• Over the past three years, Green Rise Foods' EPS grew by 75% and over the past three years, the total loss to shareholders 65%

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Shareholders may be wondering what CEO Vincent Narang plans to do to improve the less than great performance at Green Rise Foods Inc. (CVE:GRF) recently. At the next AGM coming up on 14th of November, they can influence managerial decision making through voting on resolutions, including executive remuneration. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. In our opinion, CEO compensation does not look excessive and we discuss why.

See our latest analysis for Green Rise Foods

How Does Total Compensation For Vincent Narang Compare With Other Companies In The Industry?

According to our data, Green Rise Foods Inc. has a market capitalization of CA$11m, and paid its CEO total annual compensation worth CA$208k over the year to December 2024. We note that's an increase of 36% above last year. Notably, the salary which is CA$150.0k, represents most of the total compensation being paid.

In comparison with other companies in the Canadian Food industry with market capitalizations under CA$282m, the reported median total CEO compensation was CA$388k. Accordingly, Green Rise Foods pays its CEO under the industry median. Moreover, Vincent Narang also holds CA$1.5m worth of Green Rise Foods stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 49% of total compensation represents salary and 51% is other remuneration. It's interesting to note that Green Rise Foods pays out a greater portion of remuneration through salary, compared to the 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 Green Rise Foods Inc.'s Growth Numbers

Over the past three years, Green Rise Foods Inc. has seen its earnings per share (EPS) grow by 75% per year. Its revenue is up 6.6% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Green Rise Foods Inc. Been A Good Investment?

Few Green Rise Foods Inc. shareholders would feel satisfied with the return of -65% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The loss to shareholders over the past three years is certainly concerning. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. A key focus for the board and management will be how to align the share price with 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.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Green Rise Foods that investors should look into moving forward.

Important note: Green Rise Foods is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.