Entourage Health Corp.'s (CVE:ENTG) CEO Will Probably Find It Hard To See A Huge Raise This Year

Key Insights

• Entourage Health will host its Annual General Meeting on 12th of June
• Salary of CA$464.4k is part of CEO George Scorsis's total remuneration
• The overall pay is comparable to the industry average
• Entourage Health's three-year loss to shareholders was 95% while its EPS grew by 15% over the past three years

The underwhelming share price performance of Entourage Health Corp. (CVE:ENTG) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 12th of June. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for Entourage Health

Comparing Entourage Health Corp.'s CEO Compensation With The Industry

At the time of writing, our data shows that Entourage Health Corp. has a market capitalization of CA$4.6m, and reported total annual CEO compensation of CA$508k for the year to December 2023. We note that's a small decrease of 6.0% on last year. In particular, the salary of CA$464.4k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Canadian Pharmaceuticals industry with market capitalizations under CA$274m, the reported median total CEO compensation was CA$501k. This suggests that Entourage Health remunerates its CEO largely in line with the industry average.

Component	2023	2022	Proportion (2023)
Salary	CA$464k	CA$466k	91%
Other	CA$44k	CA$75k	9%
Total Compensation	CA$508k	CA$541k	100%

Speaking on an industry level, nearly 63% of total compensation represents salary, while the remainder of 37% is other remuneration. Entourage Health is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Entourage Health Corp.'s Growth Numbers

Entourage Health Corp.'s earnings per share (EPS) grew 15% per year over the last three years. It achieved revenue growth of 3.2% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Entourage Health Corp. Been A Good Investment?

The return of -95% over three years would not have pleased Entourage Health Corp. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

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 4 warning signs for Entourage Health that you should be aware of before investing.

Switching gears from Entourage Health, 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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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.