We Think Shareholders Will Probably Be Generous With Planet 13 Holdings Inc.'s (CSE:PLTH) CEO Compensation

It would be hard to discount the role that CEO Bob Groesbeck has played in delivering the impressive results at Planet 13 Holdings Inc. (CSE:PLTH) recently. Coming up to the next AGM on 13 July 2021, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

See our latest analysis for Planet 13 Holdings

How Does Total Compensation For Bob Groesbeck Compare With Other Companies In The Industry?

At the time of writing, our data shows that Planet 13 Holdings Inc. has a market capitalization of CA$1.7b, and reported total annual CEO compensation of US$807k for the year to December 2020. Notably, that's a decrease of 30% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$288k.

On comparing similar companies from the same industry with market caps ranging from CA$1.2b to CA$4.0b, we found that the median CEO total compensation was US$1.1m. From this we gather that Bob Groesbeck is paid around the median for CEOs in the industry. Moreover, Bob Groesbeck also holds CA$330m worth of Planet 13 Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	US$288k	US$277k	36%
Other	US$519k	US$878k	64%
Total Compensation	US$807k	US$1.2m	100%

Speaking on an industry level, nearly 70% of total compensation represents salary, while the remainder of 30% is other remuneration. Planet 13 Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Planet 13 Holdings Inc.'s Growth Numbers

Planet 13 Holdings Inc.'s earnings per share (EPS) grew 10% per year over the last three years. In the last year, its revenue is up 16%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Planet 13 Holdings Inc. Been A Good Investment?

Most shareholders would probably be pleased with Planet 13 Holdings Inc. for providing a total return of 885% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.

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. We did our research and spotted 1 warning sign for Planet 13 Holdings that investors should look into moving forward.

Switching gears from Planet 13 Holdings, 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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