In 2012 Gilles Gagnon was appointed CEO of Ceapro Inc (CVE:CZO). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Gilles Gagnon’s Compensation Compare With Similar Sized Companies?
Our data indicates that Ceapro Inc is worth CA$30m, and total annual CEO compensation is CA$1.1m. (This figure is for the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$480k. We looked at a group of companies with market capitalizations under CA$264m, and the median CEO compensation was CA$155k.
It would therefore appear that Ceapro Inc pays Gilles Gagnon more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. Take a look at Ceapro’s profit growth by viewing this free data-rich visualization of earnings, revenue and cash flow.
You can see, below, how CEO compensation at Ceapro has changed over time.
Is Ceapro Inc Growing?
Over the last three years Ceapro Inc has shrunk its earnings per share by an average of 89% per year. In the last year, its revenue is down -18%.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
Has Ceapro Inc Been A Good Investment?
With a total shareholder return of 4.3% over three years, Ceapro Inc has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.
We examined the amount Ceapro Inc pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
And while shareholder returns have been respectable, they have hardly been superb. So we doubt many shareholders would consider the CEO pay to be particularly modest! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Ceapro.
Important note: Ceapro may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.