It's Unlikely That Aurora Cannabis Inc.'s (TSE:ACB) CEO Will See A Huge Pay Rise This Year

Key Insights

• Aurora Cannabis to hold its Annual General Meeting on 9th of August
• Salary of CA$773.6k is part of CEO Miguel Martin's total remuneration
• The overall pay is 439% above the industry average
• Aurora Cannabis' three-year loss to shareholders was 91% while its EPS grew by 76% over the past three years

In the past three years, the share price of Aurora Cannabis Inc. (TSE:ACB) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 9th of August could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Aurora Cannabis

Comparing Aurora Cannabis Inc.'s CEO Compensation With The Industry

According to our data, Aurora Cannabis Inc. has a market capitalization of CA$461m, and paid its CEO total annual compensation worth CA$8.0m over the year to March 2024. That's a notable increase of 16% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$774k.

In comparison with other companies in the Canadian Pharmaceuticals industry with market capitalizations ranging from CA$277m to CA$1.1b, the reported median CEO total compensation was CA$1.5m. This suggests that Miguel Martin is paid more than the median for the industry. Furthermore, Miguel Martin directly owns CA$965k worth of shares in the company.

Component	2024	2023	Proportion (2024)
Salary	CA$774k	CA$591k	10%
Other	CA$7.2m	CA$6.3m	90%
Total Compensation	CA$8.0m	CA$6.9m	100%

Talking in terms of the industry, salary represented approximately 64% of total compensation out of all the companies we analyzed, while other remuneration made up 36% of the pie. Aurora 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 Aurora Cannabis Inc.'s Growth Numbers

Over the past three years, Aurora Cannabis Inc. has seen its earnings per share (EPS) grow by 76% per year. It achieved revenue growth of 21% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Aurora Cannabis Inc. Been A Good Investment?

The return of -91% over three years would not have pleased Aurora Cannabis Inc. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

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've identified 2 warning signs for Aurora Cannabis that investors should be aware of in a dynamic business environment.

Important note: Aurora Cannabis 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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com