We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Canaf Investments Inc.'s (CVE:CAF) CEO For Now

Key Insights

• Canaf Investments will host its Annual General Meeting on 13th of May
• Salary of CA$179.9k is part of CEO Christopher Way's total remuneration
• Total compensation is 30% above industry average
• Over the past three years, Canaf Investments' EPS grew by 45% and over the past three years, the total shareholder return was 173%

Our free stock report includes 2 warning signs investors should be aware of before investing in Canaf Investments. Read for free now.

CEO Christopher Way has done a decent job of delivering relatively good performance at Canaf Investments Inc. (CVE:CAF) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 13th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Canaf Investments

Comparing Canaf Investments Inc.'s CEO Compensation With The Industry

Our data indicates that Canaf Investments Inc. has a market capitalization of CA$14m, and total annual CEO compensation was reported as CA$237k for the year to October 2024. Notably, that's an increase of 20% over the year before. In particular, the salary of CA$179.9k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Canadian Metals and Mining industry with market capitalizations below CA$276m, reported a median total CEO compensation of CA$182k. Hence, we can conclude that Christopher Way is remunerated higher than the industry median. Moreover, Christopher Way also holds CA$2.4m worth of Canaf Investments stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	CA$180k	CA$164k	76%
Other	CA$57k	CA$34k	24%
Total Compensation	CA$237k	CA$198k	100%

Speaking on an industry level, nearly 95% of total compensation represents salary, while the remainder of 5% is other remuneration. Canaf Investments pays a modest slice of remuneration through salary, as compared to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Canaf Investments Inc.'s Growth Numbers

Canaf Investments Inc. has seen its earnings per share (EPS) increase by 45% a year over the past three years. Its revenue is down 11% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 Canaf Investments Inc. Been A Good Investment?

Most shareholders would probably be pleased with Canaf Investments Inc. for providing a total return of 173% 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...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Canaf Investments that you should be aware of before investing.

Important note: Canaf Investments 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.