Shareholders May Not Be So Generous With Genesis Land Development Corp.'s (TSE:GDC) CEO Compensation And Here's Why

Key Insights

• Genesis Land Development's Annual General Meeting to take place on 14th of May
• Salary of CA$341.8k is part of CEO Iain Stewart's total remuneration
• The overall pay is 301% above the industry average
• Over the past three years, Genesis Land Development's EPS grew by 24% and over the past three years, the total shareholder return was 51%

CEO Iain Stewart has done a decent job of delivering relatively good performance at Genesis Land Development Corp. (TSE:GDC) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 14th of May. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Genesis Land Development

Comparing Genesis Land Development Corp.'s CEO Compensation With The Industry

At the time of writing, our data shows that Genesis Land Development Corp. has a market capitalization of CA$187m, and reported total annual CEO compensation of CA$930k for the year to December 2023. Notably, that's an increase of 8.2% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$342k.

For comparison, other companies in the Canadian Real Estate industry with market capitalizations below CA$275m, reported a median total CEO compensation of CA$232k. Hence, we can conclude that Iain Stewart is remunerated higher than the industry median. Furthermore, Iain Stewart directly owns CA$606k worth of shares in the company.

On an industry level, roughly 59% of total compensation represents salary and 41% is other remuneration. In Genesis Land Development's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Genesis Land Development Corp.'s Growth Numbers

Over the past three years, Genesis Land Development Corp. has seen its earnings per share (EPS) grow by 24% per year. In the last year, its revenue is up 49%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Genesis Land Development Corp. Been A Good Investment?

Boasting a total shareholder return of 51% over three years, Genesis Land Development Corp. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Genesis Land Development that you should be aware of before investing.

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. 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.