We Discuss Why Global Atomic Corporation's (TSE:GLO) CEO May Deserve A Higher Pay Packet

Shareholders will probably not be disappointed by the robust results at Global Atomic Corporation (TSE:GLO) recently and they will be keeping this in mind as they go into the AGM on 24 June 2021. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

Check out our latest analysis for Global Atomic

Comparing Global Atomic Corporation's CEO Compensation With the industry

According to our data, Global Atomic Corporation has a market capitalization of CA$477m, and paid its CEO total annual compensation worth CA$530k over the year to December 2020. We note that's a decrease of 13% compared to last year. We note that the salary portion, which stands at CA$330.0k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the same industry with market caps ranging from CA$249m to CA$998m, we found that the median CEO total compensation was CA$978k. In other words, Global Atomic pays its CEO lower than the industry median. What's more, Stephen Roman holds CA$37m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	CA$330k	CA$300k	62%
Other	CA$200k	CA$308k	38%
Total Compensation	CA$530k	CA$608k	100%

On an industry level, roughly 92% of total compensation represents salary and 8% is other remuneration. Global Atomic sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Global Atomic Corporation's Growth Numbers

Over the last three years, Global Atomic Corporation has shrunk its earnings per share by 98% per year. In the last year, its revenue is up 126%.

The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Global Atomic Corporation Been A Good Investment?

We think that the total shareholder return of 805%, over three years, would leave most Global Atomic Corporation shareholders smiling. 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.

In Summary...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. 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 pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for Global Atomic (of which 2 are significant!) that you should know about in order to have a holistic understanding of the stock.

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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