Shareholders May Be Wary Of Increasing Global Atomic Corporation's (TSE:GLO) CEO Compensation Package

Key Insights

• Global Atomic to hold its Annual General Meeting on 26th of June
• CEO Stephen Roman's total compensation includes salary of CA$530.0k
• The total compensation is 51% higher than the average for the industry
• Over the past three years, Global Atomic's EPS fell by 58% and over the past three years, the total loss to shareholders 26%

Global Atomic Corporation (TSE:GLO) has not performed well recently and CEO Stephen Roman will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 26th of June. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for Global Atomic

Comparing Global Atomic Corporation's CEO Compensation With The Industry

At the time of writing, our data shows that Global Atomic Corporation has a market capitalization of CA$441m, and reported total annual CEO compensation of CA$2.7m for the year to December 2023. That's a notable increase of 77% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$530k.

On comparing similar companies from the Canadian Metals and Mining industry with market caps ranging from CA$274m to CA$1.1b, we found that the median CEO total compensation was CA$1.8m. Hence, we can conclude that Stephen Roman is remunerated higher than the industry median. Furthermore, Stephen Roman directly owns CA$32m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 94% of total compensation represents salary and 6% is other remuneration. It's interesting to note that Global Atomic allocates a smaller portion of compensation to salary 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.

A Look at Global Atomic Corporation's Growth Numbers

Global Atomic Corporation has reduced its earnings per share by 58% a year over the last three years. Its revenue is down 2.1% over the previous year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Global Atomic Corporation Been A Good Investment?

Given the total shareholder loss of 26% over three years, many shareholders in Global Atomic Corporation are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 5 warning signs for Global Atomic (3 are concerning!) that you should be aware of before investing here.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com