What Did Gulf & Pacific Equities' (CVE:GUF) CEO Take Home Last Year?

The CEO of Gulf & Pacific Equities Corp. (CVE:GUF) is Anthony Cohen, and this article examines 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.

View our latest analysis for Gulf & Pacific Equities

How Does Total Compensation For Anthony Cohen Compare With Other Companies In The Industry?

According to our data, Gulf & Pacific Equities Corp. has a market capitalization of CA$3.9m, and paid its CEO total annual compensation worth CA$179k over the year to December 2019. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at CA$168.7k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below CA$256m, reported a median total CEO compensation of CA$300k. This suggests that Anthony Cohen is paid below the industry median. What's more, Anthony Cohen holds CA$2.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 46% of total compensation represents salary and 54% is other remuneration. Gulf & Pacific Equities is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Gulf & Pacific Equities Corp.'s Growth

Gulf & Pacific Equities Corp. has seen its earnings per share (EPS) increase by 64% a year over the past three years. In the last year, its revenue is down 5.4%.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 Gulf & Pacific Equities Corp. Been A Good Investment?

Since shareholders would have lost about 42% over three years, some Gulf & Pacific Equities Corp. investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, Gulf & Pacific Equities Corp. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Importantly though, the company has impressed with its EPS growth over three years. Considering EPS are on the up, we would say Anthony is compensated fairly. But shareholders will likely want to hold off on any raise for Anthony until investor returns are positive.

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 3 warning signs for Gulf & Pacific Equities (2 can't be ignored!) that you should be aware of before investing here.

Important note: Gulf & Pacific Equities 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. 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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