How Much Is Earth Alive Clean Technologies' (CVE:EAC) CEO Getting Paid?

Michael Warren became the CEO of Earth Alive Clean Technologies Inc. (CVE:EAC) in 2017, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Earth Alive Clean Technologies.

Check out our latest analysis for Earth Alive Clean Technologies

How Does Total Compensation For Michael Warren Compare With Other Companies In The Industry?

Our data indicates that Earth Alive Clean Technologies Inc. has a market capitalization of CA$28m, and total annual CEO compensation was reported as CA$175k for the year to December 2019. That's mostly flat as compared to the prior year's compensation. It is worth noting that the CEO compensation consists entirely of the salary, worth CA$175k.

For comparison, other companies in the industry with market capitalizations below CA$259m, reported a median total CEO compensation of CA$508k. In other words, Earth Alive Clean Technologies pays its CEO lower than the industry median. What's more, Michael Warren holds CA$916k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 52% of total compensation represents salary and 48% is other remuneration. Speaking on a company level, Earth Alive Clean Technologies prefers to tread along a traditional path, disbursing all compensation through a salary. 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.

Earth Alive Clean Technologies Inc.'s Growth

Over the past three years, Earth Alive Clean Technologies Inc. has seen its earnings per share (EPS) grow by 32% per year. Its revenue is up 48% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Earth Alive Clean Technologies Inc. Been A Good Investment?

Most shareholders would probably be pleased with Earth Alive Clean Technologies Inc. for providing a total return of 61% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Earth Alive Clean Technologies rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, Earth Alive Clean Technologies Inc. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. When taking into account the company's strong EPS growth over the past three years, it appears CEO compensation is modest. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 5 warning signs (and 2 which are a bit concerning) in Earth Alive Clean Technologies we think you should know about.

Switching gears from Earth Alive Clean Technologies, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. 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.
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