Most Shareholders Will Probably Find That The CEO Compensation For Jamieson Wellness Inc. (TSE:JWEL) Is Reasonable

Key Insights

• Jamieson Wellness will host its Annual General Meeting on 27th of May
• Salary of CA$686.2k is part of CEO Mike Pilato's total remuneration
• Total compensation is similar to the industry average
• Jamieson Wellness' total shareholder return over the past three years was 10% while its EPS was down 2.4% over the past three years

We've discovered 2 warning signs about Jamieson Wellness. View them for free.

The share price of Jamieson Wellness Inc. (TSE:JWEL) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. The upcoming AGM on 27th of May may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

Check out our latest analysis for Jamieson Wellness

Comparing Jamieson Wellness Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Jamieson Wellness Inc. has a market capitalization of CA$1.4b, and reported total annual CEO compensation of CA$3.0m for the year to December 2024. That's a modest increase of 7.6% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$686k.

In comparison with other companies in the Canada Personal Products industry with market capitalizations ranging from CA$559m to CA$2.2b, the reported median CEO total compensation was CA$3.0m. So it looks like Jamieson Wellness compensates Mike Pilato in line with the median for the industry. Furthermore, Mike Pilato directly owns CA$2.0m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	CA$686k	CA$663k	23%
Other	CA$2.3m	CA$2.2m	77%
Total Compensation	CA$3.0m	CA$2.8m	100%

On an industry level, roughly 96% of total compensation represents salary and 4% is other remuneration. Jamieson Wellness 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.

A Look at Jamieson Wellness Inc.'s Growth Numbers

Over the last three years, Jamieson Wellness Inc. has shrunk its earnings per share by 2.4% per year. In the last year, its revenue is up 13%.

Its a bit disappointing to see that the company has failed to grow its EPS. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for us to put aside my concerns around EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Jamieson Wellness Inc. Been A Good Investment?

With a total shareholder return of 10% over three years, Jamieson Wellness Inc. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

Shareholder returns, while positive, should be looked at along with earnings, which have not grown at all recently. This makes us think the share price momentum may slow in the future. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Jamieson Wellness that investors should be aware of in a dynamic business environment.

Important note: Jamieson Wellness 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.