Shareholders May Be More Conservative With Vitreous Glass Inc.'s (CVE:VCI) CEO Compensation For Now

Key Insights

• Vitreous Glass will host its Annual General Meeting on 7th of March
• Salary of CA$86.4k is part of CEO Pat Cashion's total remuneration
• Total compensation is 255% above industry average
• Over the past three years, Vitreous Glass' EPS grew by 8.8% and over the past three years, the total shareholder return was 72%

CEO Pat Cashion has done a decent job of delivering relatively good performance at Vitreous Glass Inc. (CVE:VCI) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 7th of March. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Vitreous Glass

Comparing Vitreous Glass Inc.'s CEO Compensation With The Industry

Our data indicates that Vitreous Glass Inc. has a market capitalization of CA$29m, and total annual CEO compensation was reported as CA$847k for the year to September 2022. We note that's a decrease of 30% compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$86k.

In comparison with other companies in the Canada Basic Materials industry with market capitalizations under CA$272m, the reported median total CEO compensation was CA$239k. Hence, we can conclude that Pat Cashion is remunerated higher than the industry median. What's more, Pat Cashion holds CA$8.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	CA$86k	CA$86k	10%
Other	CA$761k	CA$1.1m	90%
Total Compensation	CA$847k	CA$1.2m	100%

On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. Vitreous Glass sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Vitreous Glass Inc.'s Growth Numbers

Over the past three years, Vitreous Glass Inc. has seen its earnings per share (EPS) grow by 8.8% per year. In the last year, its revenue is down 5.5%.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest improvement in EPS is good. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is 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 Vitreous Glass Inc. Been A Good Investment?

Most shareholders would probably be pleased with Vitreous Glass Inc. for providing a total return of 72% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 3 warning signs for Vitreous Glass that investors should look into moving forward.

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. 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.