Does Devonian Health Group's (CVE:GSD) CEO Salary Compare Well With Industry Peers?

Andre Boulet became the CEO of Devonian Health Group Inc. (CVE:GSD) in 2015, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Devonian Health Group

How Does Total Compensation For Andre Boulet Compare With Other Companies In The Industry?

Our data indicates that Devonian Health Group Inc. has a market capitalization of CA$22m, and total annual CEO compensation was reported as CA$216k for the year to July 2020. That's mostly flat as compared to the prior year's compensation. In particular, the salary of CA$200.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under CA$253m, the reported median total CEO compensation was CA$219k. So it looks like Devonian Health Group compensates Andre Boulet in line with the median for the industry.

On an industry level, roughly 82% of total compensation represents salary and 18% is other remuneration. Devonian Health Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Devonian Health Group Inc.'s Growth Numbers

Devonian Health Group Inc.'s earnings per share (EPS) grew 22% per year over the last three years. Its revenue is down 47% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Devonian Health Group Inc. Been A Good Investment?

We think that the total shareholder return of 2,580%, over three years, would leave most Devonian Health Group Inc. shareholders smiling. 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.

To Conclude...

As we touched on above, Devonian Health Group Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. Indeed, many might consider that Andre is compensated rather modestly, given the solid company performance! Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 5 warning signs for Devonian Health Group (1 shouldn't be ignored!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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