Trulieve Cannabis Corp.'s (CSE:TRUL) CEO Will Probably Struggle To See A Pay Rise This Year

Key Insights

• Trulieve Cannabis' Annual General Meeting to take place on 12th of June
• Salary of US$750.0k is part of CEO Kim Rivers's total remuneration
• The overall pay is 31% below the industry average
• Trulieve Cannabis' EPS declined by 101% over the past three years while total shareholder loss over the past three years was 73%

The underwhelming performance at Trulieve Cannabis Corp. (CSE:TRUL) recently has probably not pleased shareholders. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 12th of June. The data we gathered below shows that CEO compensation looks acceptable for now.

View our latest analysis for Trulieve Cannabis

Comparing Trulieve Cannabis Corp.'s CEO Compensation With The Industry

At the time of writing, our data shows that Trulieve Cannabis Corp. has a market capitalization of CA$2.4b, and reported total annual CEO compensation of US$3.4m for the year to December 2023. Notably, that's a decrease of 14% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at US$750k.

On comparing similar companies from the Canadian Pharmaceuticals industry with market caps ranging from CA$1.4b to CA$4.4b, we found that the median CEO total compensation was US$4.9m. That is to say, Kim Rivers is paid under the industry median. Moreover, Kim Rivers also holds CA$212m worth of Trulieve Cannabis stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	US$750k	US$500k	22%
Other	US$2.6m	US$3.4m	78%
Total Compensation	US$3.4m	US$3.9m	100%

On an industry level, around 64% of total compensation represents salary and 36% is other remuneration. Trulieve Cannabis pays a modest slice of remuneration through salary, as compared to the broader 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 Trulieve Cannabis Corp.'s Growth Numbers

Over the last three years, Trulieve Cannabis Corp. has shrunk its earnings per share by 101% per year. In the last year, its revenue is down 4.3%.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Trulieve Cannabis Corp. Been A Good Investment?

The return of -73% over three years would not have pleased Trulieve Cannabis Corp. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

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 2 warning signs for Trulieve Cannabis that you should be aware of before investing.

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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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.