Shareholders Will Probably Not Have Any Issues With Cogeco Communications Inc.'s (TSE:CCA) CEO Compensation

Key Insights

• Cogeco Communications' Annual General Meeting to take place on 11th of January
• Total pay for CEO Philippe Jette includes CA$1.13m salary
• The total compensation is 43% less than the average for the industry
• Cogeco Communications' EPS grew by 4.6% over the past three years while total shareholder loss over the past three years was 32%

Shareholders may be wondering what CEO Philippe Jette plans to do to improve the less than great performance at Cogeco Communications Inc. (TSE:CCA) recently. At the next AGM coming up on 11th of January, they can influence managerial decision making through voting on resolutions, including executive remuneration. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.

Check out our latest analysis for Cogeco Communications

How Does Total Compensation For Philippe Jette Compare With Other Companies In The Industry?

According to our data, Cogeco Communications Inc. has a market capitalization of CA$2.7b, and paid its CEO total annual compensation worth CA$4.7m over the year to August 2023. Notably, that's a decrease of 10% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$1.1m.

For comparison, other companies in the Canadian Media industry with market capitalizations ranging between CA$1.3b and CA$4.3b had a median total CEO compensation of CA$8.2m. That is to say, Philippe Jette is paid under the industry median. Moreover, Philippe Jette also holds CA$958k worth of Cogeco Communications stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	CA$1.1m	CA$1.1m	24%
Other	CA$3.6m	CA$4.2m	76%
Total Compensation	CA$4.7m	CA$5.2m	100%

Speaking on an industry level, nearly 44% of total compensation represents salary, while the remainder of 56% is other remuneration. Cogeco Communications 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.

Cogeco Communications Inc.'s Growth

Over the past three years, Cogeco Communications Inc. has seen its earnings per share (EPS) grow by 4.6% per year. In the last year, its revenue is up 2.9%.

We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Cogeco Communications Inc. Been A Good Investment?

With a total shareholder return of -32% over three years, Cogeco Communications Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The fact that shareholders are sitting on a loss is certainly disheartening. The lacklustre earnings growth perhaps may have something to do with the downward trend in the share price. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Cogeco Communications (2 make us uncomfortable!) that you should be aware of before investing here.

Switching gears from Cogeco Communications, 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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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.