We Think Chemtrade Logistics Income Fund's (TSE:CHE.UN) CEO Compensation Looks Fair

Key Insights

• Chemtrade Logistics Income Fund's Annual General Meeting to take place on 13th of May
• CEO Scott Rook's total compensation includes salary of CA$1.13m
• Total compensation is similar to the industry average
• Chemtrade Logistics Income Fund's EPS grew by 79% over the past three years while total shareholder return over the past three years was 63%

Our free stock report includes 3 warning signs investors should be aware of before investing in Chemtrade Logistics Income Fund. Read for free now.

It would be hard to discount the role that CEO Scott Rook has played in delivering the impressive results at Chemtrade Logistics Income Fund (TSE:CHE.UN) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 13th of May. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

Check out our latest analysis for Chemtrade Logistics Income Fund

Comparing Chemtrade Logistics Income Fund's CEO Compensation With The Industry

According to our data, Chemtrade Logistics Income Fund has a market capitalization of CA$1.1b, and paid its CEO total annual compensation worth CA$6.7m over the year to December 2024. We note that's a decrease of 23% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$1.1m.

For comparison, other companies in the Canadian Chemicals industry with market capitalizations ranging between CA$552m and CA$2.2b had a median total CEO compensation of CA$5.4m. This suggests that Chemtrade Logistics Income Fund remunerates its CEO largely in line with the industry average. Moreover, Scott Rook also holds CA$1.2m worth of Chemtrade Logistics Income Fund stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	CA$1.1m	CA$988k	17%
Other	CA$5.6m	CA$7.8m	83%
Total Compensation	CA$6.7m	CA$8.7m	100%

On an industry level, around 60% of total compensation represents salary and 40% is other remuneration. In Chemtrade Logistics Income Fund's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Chemtrade Logistics Income Fund's Growth

Chemtrade Logistics Income Fund's earnings per share (EPS) grew 79% per year over the last three years. Its revenue is down 3.2% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Chemtrade Logistics Income Fund Been A Good Investment?

Most shareholders would probably be pleased with Chemtrade Logistics Income Fund for providing a total return of 63% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

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. That's why we did some digging and identified 3 warning signs for Chemtrade Logistics Income Fund that investors should think about before committing capital to this stock.

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.