Shareholders May Not Be So Generous With Quebecor Inc.'s (TSE:QBR.A) CEO Compensation And Here's Why

Key Insights

• Quebecor to hold its Annual General Meeting on 9th of May
• Salary of CA$1.48m is part of CEO Pierre Peladeau's total remuneration
• The overall pay is 39% above the industry average
• Over the past three years, Quebecor's EPS grew by 7.3% and over the past three years, the total loss to shareholders 5.9%

In the past three years, the share price of Quebecor Inc. (TSE:QBR.A) has struggled to generate growth for its shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. The AGM coming up on the 9th of May could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Quebecor

How Does Total Compensation For Pierre Peladeau Compare With Other Companies In The Industry?

At the time of writing, our data shows that Quebecor Inc. has a market capitalization of CA$6.6b, and reported total annual CEO compensation of CA$4.9m for the year to December 2023. Notably, that's an increase of 57% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$1.5m.

On comparing similar companies from the Canadian Telecom industry with market caps ranging from CA$5.5b to CA$16b, we found that the median CEO total compensation was CA$3.5m. Hence, we can conclude that Pierre Peladeau is remunerated higher than the industry median. What's more, Pierre Peladeau holds CA$56m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	CA$1.5m	CA$1.4m	30%
Other	CA$3.4m	CA$1.7m	70%
Total Compensation	CA$4.9m	CA$3.1m	100%

On an industry level, around 30% of total compensation represents salary and 70% is other remuneration. Although there is a difference in how total compensation is set, Quebecor more or less reflects the market in terms of setting the salary. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Quebecor Inc.'s Growth

Over the past three years, Quebecor Inc. has seen its earnings per share (EPS) grow by 7.3% per year. Its revenue is up 20% over the last year.

We think the revenue growth is good. And the modest growth in EPS isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Quebecor Inc. Been A Good Investment?

Given the total shareholder loss of 5.9% over three years, many shareholders in Quebecor Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. 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 can have a massive impact on performance, but it's just one element. We've identified 1 warning sign for Quebecor that investors should be aware of in a dynamic business environment.

Switching gears from Quebecor, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.