We Think Some Shareholders May Hesitate To Increase WestBond Enterprises Corporation's (CVE:WBE) CEO Compensation

Performance at WestBond Enterprises Corporation (CVE:WBE) has been reasonably good and CEO Gennaro Magistrale has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 11 August 2021. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for WestBond Enterprises

How Does Total Compensation For Gennaro Magistrale Compare With Other Companies In The Industry?

According to our data, WestBond Enterprises Corporation has a market capitalization of CA$26m, and paid its CEO total annual compensation worth CA$303k over the year to March 2021. We note that's an increase of 11% above last year. We note that the salary of CA$169.9k makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under CA$251m, the reported median total CEO compensation was CA$221k. Accordingly, our analysis reveals that WestBond Enterprises Corporation pays Gennaro Magistrale north of the industry median. What's more, Gennaro Magistrale holds CA$6.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2021	2020	Proportion (2021)
Salary	CA$170k	CA$114k	56%
Other	CA$133k	CA$157k	44%
Total Compensation	CA$303k	CA$271k	100%

On an industry level, around 33% of total compensation represents salary and 67% is other remuneration. According to our research, WestBond Enterprises has allocated a higher percentage of pay to salary in comparison to the wider industry. 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.

A Look at WestBond Enterprises Corporation's Growth Numbers

WestBond Enterprises Corporation has seen its earnings per share (EPS) increase by 103% a year over the past three years. It achieved revenue growth of 20% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 WestBond Enterprises Corporation Been A Good Investment?

Boasting a total shareholder return of 756% over three years, WestBond Enterprises Corporation 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...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for WestBond Enterprises that investors should be aware of in a dynamic business environment.

Switching gears from WestBond Enterprises, 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.

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