This Is Why Shareholders May Want To Hold Back On A Pay Rise For Medicure Inc.'s (CVE:MPH) CEO

Key Insights

• Medicure will host its Annual General Meeting on 21st of May
• Salary of CA$264.0k is part of CEO Albert Friesen's total remuneration
• The overall pay is 52% below the industry average
• Medicure's EPS declined by 71% over the past three years while total shareholder loss over the past three years was 28%

Our free stock report includes 2 warning signs investors should be aware of before investing in Medicure. Read for free now.

The underwhelming performance at Medicure Inc. (CVE:MPH) recently has probably not pleased shareholders. At the upcoming AGM on 21st of May, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. From our analysis below, we think CEO compensation looks appropriate for now.

View our latest analysis for Medicure

Comparing Medicure Inc.'s CEO Compensation With The Industry

Our data indicates that Medicure Inc. has a market capitalization of CA$9.1m, and total annual CEO compensation was reported as CA$284k for the year to December 2024. That's a notable increase of 22% on last year. Notably, the salary which is CA$264.0k, represents most of the total compensation being paid.

In comparison with other companies in the Canadian Biotechs industry with market capitalizations under CA$279m, the reported median total CEO compensation was CA$591k. That is to say, Albert Friesen is paid under the industry median. Furthermore, Albert Friesen directly owns CA$2.1m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	CA$264k	CA$216k	93%
Other	CA$20k	CA$16k	7%
Total Compensation	CA$284k	CA$232k	100%

Speaking on an industry level, nearly 64% of total compensation represents salary, while the remainder of 36% is other remuneration. It's interesting to note that Medicure pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Medicure Inc.'s Growth

Over the last three years, Medicure Inc. has shrunk its earnings per share by 71% per year. In the last year, its revenue changed by just 1.0%.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue is seriously uninspiring. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Medicure Inc. Been A Good Investment?

Given the total shareholder loss of 28% over three years, many shareholders in Medicure Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Medicure that investors should look into moving forward.

Important note: Medicure 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.