Here's What We Learned About The CEO Pay At Vitreous Glass Inc. (CVE:VCI)

Pat Cashion is the CEO of Vitreous Glass Inc. (CVE:VCI), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Vitreous Glass

How Does Total Compensation For Pat Cashion Compare With Other Companies In The Industry?

At the time of writing, our data shows that Vitreous Glass Inc. has a market capitalization of CA$26m, and reported total annual CEO compensation of CA$920k for the year to September 2020. Notably, that's an increase of 14% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$86k.

In comparison with other companies in the industry with market capitalizations under CA$254m, the reported median total CEO compensation was CA$482k. Accordingly, our analysis reveals that Vitreous Glass Inc. pays Pat Cashion north of the industry median. Moreover, Pat Cashion also holds CA$7.4m worth of Vitreous Glass 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 57% of total compensation represents salary, while the remainder of 43% is other remuneration. It's interesting to note that Vitreous Glass allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Vitreous Glass Inc.'s Growth

Over the past three years, Vitreous Glass Inc. has seen its earnings per share (EPS) grow by 6.5% per year. It achieved revenue growth of 10% over the last year.

We think the revenue growth is good. And the improvement in EPSis modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. 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 Vitreous Glass Inc. Been A Good Investment?

We think that the total shareholder return of 53%, over three years, would leave most Vitreous Glass Inc. shareholders smiling. 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.

In Summary...

As previously discussed, Pat is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Still, shareholder returns for the company are very impressive for the last three years. That's why we were hoping EPS growth would match this growth, but sadly that is not the case. We'd ideally want to see higher EPS growth, but CEO compensation seems to be within reason, given high shareholder 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 3 warning signs (and 1 which is significant) in Vitreous Glass we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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