It Looks Like The CEO Of Trisura Group Ltd. (TSE:TSU) May Be Underpaid Compared To Peers

Simply Wall St
May 19, 2021
Source: Shutterstock

The impressive results at Trisura Group Ltd. (TSE:TSU) recently will be great news for shareholders. At the upcoming AGM on 26 May 2021, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

See our latest analysis for Trisura Group

How Does Total Compensation For David Clare Compare With Other Companies In The Industry?

According to our data, Trisura Group Ltd. has a market capitalization of CA$1.5b, and paid its CEO total annual compensation worth CA$1.0m over the year to December 2020. That's a modest increase of 5.3% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$296k.

For comparison, other companies in the same industry with market capitalizations ranging between CA$1.2b and CA$3.9b had a median total CEO compensation of CA$3.5m. That is to say, David Clare is paid under the industry median. What's more, David Clare holds CA$5.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component20202019Proportion (2020)
Salary CA$296k CA$271k 29%
Other CA$712k CA$686k 71%
Total CompensationCA$1.0m CA$957k100%

Speaking on an industry level, nearly 26% of total compensation represents salary, while the remainder of 74% is other remuneration. Trisura Group pays out 29% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

TSX:TSU CEO Compensation May 20th 2021

Trisura Group Ltd.'s Growth

Trisura Group Ltd.'s earnings per share (EPS) grew 87% per year over the last three years. It achieved revenue growth of 59% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Trisura Group Ltd. Been A Good Investment?

Most shareholders would probably be pleased with Trisura Group Ltd. for providing a total return of 486% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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 Trisura Group that investors should look into moving forward.

Switching gears from Trisura Group, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

If you’re looking to trade a wide range of investments, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.