Increases to CEO Compensation Might Be Put On Hold For Now at Algoma Central Corporation (TSE:ALC)

Key Insights

• Algoma Central to hold its Annual General Meeting on 2nd of May
• Salary of CA$700.0k is part of CEO Gregg Ruhl's total remuneration
• The total compensation is 273% higher than the average for the industry
• Over the past three years, Algoma Central's EPS grew by 1.3% and over the past three years, the total shareholder return was 10%

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Performance at Algoma Central Corporation (TSE:ALC) has been reasonably good and CEO Gregg Ruhl has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 2nd of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Algoma Central

Comparing Algoma Central Corporation's CEO Compensation With The Industry

Our data indicates that Algoma Central Corporation has a market capitalization of CA$616m, and total annual CEO compensation was reported as CA$2.2m for the year to December 2024. That's mostly flat as compared to the prior year's compensation. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$700k.

In comparison with other companies in the Canada Shipping industry with market capitalizations ranging from CA$277m to CA$1.1b, the reported median CEO total compensation was CA$598k. Accordingly, our analysis reveals that Algoma Central Corporation pays Gregg Ruhl north of the industry median. Moreover, Gregg Ruhl also holds CA$122k worth of Algoma Central stock directly under their own name.

Speaking on an industry level, nearly 24% of total compensation represents salary, while the remainder of 76% is other remuneration. It's interesting to note that Algoma Central pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Algoma Central Corporation's Growth Numbers

Over the past three years, Algoma Central Corporation has seen its earnings per share (EPS) grow by 1.3% per year. Its revenue is down 2.5% over the previous year.

We would prefer it if there was revenue growth, but the modest EPS growth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Algoma Central Corporation Been A Good Investment?

Algoma Central Corporation has served shareholders reasonably well, with a total return of 10% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Algoma Central that investors should think about before committing capital to this stock.

Switching gears from Algoma Central, 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.

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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.