Shareholders Will Probably Not Have Any Issues With G6 Materials Corp.'s (CVE:GGG) CEO Compensation

Under the guidance of CEO Daniel Stolyarov, G6 Materials Corp. (CVE:GGG) has performed reasonably well recently. As shareholders go into the upcoming AGM on 16 December 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.

View our latest analysis for G6 Materials

Comparing G6 Materials Corp.'s CEO Compensation With the industry

Our data indicates that G6 Materials Corp. has a market capitalization of CA$17m, and total annual CEO compensation was reported as US$144k for the year to May 2021. We note that's an increase of 20% above last year. It is worth noting that the CEO compensation consists entirely of the salary, worth US$144k.

On comparing similar-sized companies in the industry with market capitalizations below CA$254m, we found that the median total CEO compensation was US$192k. So it looks like G6 Materials compensates Daniel Stolyarov in line with the median for the industry. Furthermore, Daniel Stolyarov directly owns CA$1.0m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	US$144k	US$120k	100%
Other	-	-	-
Total Compensation	US$144k	US$120k	100%

On an industry level, roughly 67% of total compensation represents salary and 33% is other remuneration. Speaking on a company level, G6 Materials prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at G6 Materials Corp.'s Growth Numbers

Earnings per share at G6 Materials Corp. are much the same as they were three years ago, albeit with slightly higher. Its revenue is down 21% over the previous year.

We would prefer it if there was revenue growth, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has G6 Materials Corp. Been A Good Investment?

We think that the total shareholder return of 50%, over three years, would leave most G6 Materials Corp. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

G6 Materials pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

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 4 warning signs (and 1 which is potentially serious) in G6 Materials we think you should know about.

Important note: G6 Materials 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.

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

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.