Stock Analysis

Trilogy International Partners Inc.'s (TSE:TRL) CEO Might Not Expect Shareholders To Be So Generous This Year

Shareholders will probably not be too impressed with the underwhelming results at Trilogy International Partners Inc. (TSE:TRL) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 14 May 2021. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Trilogy International Partners

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How Does Total Compensation For Brad Horwitz Compare With Other Companies In The Industry?

Our data indicates that Trilogy International Partners Inc. has a market capitalization of CA$138m, and total annual CEO compensation was reported as US$1.0m for the year to December 2020. That's a notable decrease of 11% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$400k.

In comparison with other companies in the industry with market capitalizations under CA$243m, the reported median total CEO compensation was US$140k. Accordingly, our analysis reveals that Trilogy International Partners Inc. pays Brad Horwitz north of the industry median. Furthermore, Brad Horwitz directly owns CA$5.6m worth of shares in the company, implying that they are deeply invested in the company's success.

Component20202019Proportion (2020)
SalaryUS$400kUS$400k38%
OtherUS$641kUS$763k62%
Total CompensationUS$1.0m US$1.2m100%

Speaking on an industry level, nearly 26% of total compensation represents salary, while the remainder of 74% is other remuneration. Trilogy International Partners is paying a higher share of its remuneration through a salary in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
TSX:TRL CEO Compensation May 8th 2021

A Look at Trilogy International Partners Inc.'s Growth Numbers

Over the last three years, Trilogy International Partners Inc. has shrunk its earnings per share by 8.2% per year. Its revenue is down 12% over the previous year.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Trilogy International Partners Inc. Been A Good Investment?

Few Trilogy International Partners Inc. shareholders would feel satisfied with the return of -63% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. 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.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Trilogy International Partners 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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Valuation is complex, but we're here to simplify it.

Discover if Trilogy International Partners might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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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About TSXV:TRL.H

Trilogy International Partners

Trilogy International Partners Inc. does not have significant operations.

Flawless balance sheet and slightly overvalued.

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