How Does International Zeolite's (CVE:IZ) CEO Salary Compare to Peers?

This article will reflect on the compensation paid to Ray Paquette who has served as CEO of International Zeolite Corp. (CVE:IZ) since 1999. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for International Zeolite

How Does Total Compensation For Ray Paquette Compare With Other Companies In The Industry?

At the time of writing, our data shows that International Zeolite Corp. has a market capitalization of CA$4.9m, and reported total annual CEO compensation of CA$108k for the year to June 2020. That is, the compensation was roughly the same as last year. Notably, the salary of CA$108k is the entirety of the CEO compensation.

For comparison, other companies in the industry with market capitalizations below CA$254m, reported a median total CEO compensation of CA$150k. From this we gather that Ray Paquette is paid around the median for CEOs in the industry. Moreover, Ray Paquette also holds CA$730k worth of International Zeolite stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 93% of total compensation represents salary, while the remainder of 6.6% is other remuneration. Speaking on a company level, International Zeolite 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.

International Zeolite Corp.'s Growth

Over the past three years, International Zeolite Corp. has seen its earnings per share (EPS) grow by 61% per year. It saw its revenue drop 19% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has International Zeolite Corp. Been A Good Investment?

Given the total shareholder loss of 55% over three years, many shareholders in International Zeolite Corp. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

International Zeolite pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As previously discussed, Ray is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. But EPS growth is moving in a favorable direction, certainly a positive sign. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 4 warning signs (and 3 which shouldn't be ignored) in International Zeolite we think you should know about.

Switching gears from International Zeolite, 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.

If you decide to trade International Zeolite, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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