Shareholders May Be Wary Of Increasing Glacier Media Inc.'s (TSE:GVC) CEO Compensation Package

The results at Glacier Media Inc. (TSE:GVC) have been quite disappointing recently and CEO Jonathon James Kennedy bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 24 June 2021. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for Glacier Media

Comparing Glacier Media Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that Glacier Media Inc. has a market capitalization of CA$61m, and reported total annual CEO compensation of CA$774k for the year to December 2020. That is, the compensation was roughly the same as last year. We note that the salary of CA$393.8k 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$247m, the reported median total CEO compensation was CA$568k. Accordingly, our analysis reveals that Glacier Media Inc. pays Jonathon James Kennedy north of the industry median. Moreover, Jonathon James Kennedy also holds CA$150k worth of Glacier Media stock directly under their own name.

Component	2020	2019	Proportion (2020)
Salary	CA$394k	CA$419k	51%
Other	CA$380k	CA$375k	49%
Total Compensation	CA$774k	CA$794k	100%

Talking in terms of the broader industry, salary and other compensation roughly make up 50% each, of the total compensation. Glacier Media is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Glacier Media Inc.'s Growth

Over the last three years, Glacier Media Inc. has shrunk its earnings per share by 19% per year. In the last year, its revenue is down 20%.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Glacier Media Inc. Been A Good Investment?

The return of -41% over three years would not have pleased Glacier Media Inc. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

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 Glacier Media 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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