Vitreous Glass Inc.'s (CVE:VCI) CEO Compensation Is Looking A Bit Stretched At The Moment

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 08 March 2022. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out 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$30m, and reported total annual CEO compensation of CA$1.2m for the year to September 2021. We note that's an increase of 35% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$86k.

For comparison, other companies in the industry with market capitalizations below CA$253m, reported a median total CEO compensation of CA$374k. Accordingly, our analysis reveals that Vitreous Glass Inc. pays Pat Cashion north of the industry median. Moreover, Pat Cashion also holds CA$8.6m worth of Vitreous Glass stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2021	2020	Proportion (2021)
Salary	CA$86k	CA$86k	7%
Other	CA$1.2m	CA$833k	93%
Total Compensation	CA$1.2m	CA$920k	100%

On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. In Vitreous Glass' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Vitreous Glass Inc.'s Growth

Vitreous Glass Inc. has seen its earnings per share (EPS) increase by 17% a year over the past three years. It achieved revenue growth of 29% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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?

Boasting a total shareholder return of 74% over three years, Vitreous Glass Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Vitreous Glass that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.