Most Shareholders Will Probably Find That The CEO Compensation For Sienna Senior Living Inc. (TSE:SIA) Is Reasonable

Key Insights

• Sienna Senior Living's Annual General Meeting to take place on 29th of May
• CEO Nitin Jain's total compensation includes salary of CA$691.3k
• The total compensation is similar to the average for the industry
• Sienna Senior Living's total shareholder return over the past three years was 14% while its EPS grew by 10% over the past three years

Under the guidance of CEO Nitin Jain, Sienna Senior Living Inc. (TSE:SIA) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 29th of May. Here is our take on why we think the CEO compensation looks appropriate.

See our latest analysis for Sienna Senior Living

How Does Total Compensation For Nitin Jain Compare With Other Companies In The Industry?

At the time of writing, our data shows that Sienna Senior Living Inc. has a market capitalization of CA$1.1b, and reported total annual CEO compensation of CA$2.3m for the year to December 2023. That's a notable increase of 21% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$691k.

For comparison, other companies in the Canadian Healthcare industry with market capitalizations ranging between CA$548m and CA$2.2b had a median total CEO compensation of CA$1.8m. This suggests that Sienna Senior Living remunerates its CEO largely in line with the industry average. Moreover, Nitin Jain also holds CA$228k worth of Sienna Senior Living stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	CA$691k	CA$664k	30%
Other	CA$1.6m	CA$1.2m	70%
Total Compensation	CA$2.3m	CA$1.9m	100%

Talking in terms of the industry, salary represented approximately 52% of total compensation out of all the companies we analyzed, while other remuneration made up 48% of the pie. Sienna Senior Living sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Sienna Senior Living Inc.'s Growth

Sienna Senior Living Inc. has seen its earnings per share (EPS) increase by 10% a year over the past three years. It achieved revenue growth of 12% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Sienna Senior Living Inc. Been A Good Investment?

With a total shareholder return of 14% over three years, Sienna Senior Living Inc. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

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 Sienna Senior Living that investors should look into moving forward.

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.