What We Learned About TVA Group's (TSE:TVA.B) CEO Compensation

By
Simply Wall St
Published
December 31, 2020

France Lauzière has been the CEO of TVA Group Inc. (TSE:TVA.B) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for TVA Group.

Check out our latest analysis for TVA Group

How Does Total Compensation For France Lauzière Compare With Other Companies In The Industry?

Our data indicates that TVA Group Inc. has a market capitalization of CA$89m, and total annual CEO compensation was reported as CA$992k for the year to December 2019. We note that's an increase of 9.2% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$343k.

On comparing similar-sized companies in the industry with market capitalizations below CA$255m, we found that the median total CEO compensation was CA$681k. Hence, we can conclude that France Lauzière is remunerated higher than the industry median.

Component20192018Proportion (2019)
Salary CA$343k CA$333k 35%
Other CA$649k CA$575k 65%
Total CompensationCA$992k CA$908k100%

On an industry level, total compensation is equally proportioned between salary and other compensation, that is, they each represent approximately 50% of the total compensation. TVA Group pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

TSX:TVA.B CEO Compensation December 31st 2020

A Look at TVA Group Inc.'s Growth Numbers

Over the past three years, TVA Group Inc. has seen its earnings per share (EPS) grow by 101% per year. Its revenue is down 5.7% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has TVA Group Inc. Been A Good Investment?

Since shareholders would have lost about 48% over three years, some TVA Group Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As previously discussed, France is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But the company has impressed with its EPS growth, but it's disappointing to see negative shareholder returns over the same period. Considering overall performance, we can't say France is underpaid, in fact compensation is definitely on the higher side.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for TVA Group that investors should think about before committing capital to this stock.

Important note: TVA Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. 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.
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