Titanium Transportation Group Inc.'s (CVE:TTR) CEO Looks Due For A Compensation Raise

Simply Wall St
June 08, 2021

The solid performance at Titanium Transportation Group Inc. (CVE:TTR) has been impressive and shareholders will probably be pleased to know that CEO Ted Daniel has delivered. This would be kept in mind at the upcoming AGM on 15 June 2021 which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.

See our latest analysis for Titanium Transportation Group

How Does Total Compensation For Ted Daniel Compare With Other Companies In The Industry?

According to our data, Titanium Transportation Group Inc. has a market capitalization of CA$163m, and paid its CEO total annual compensation worth CA$340k over the year to December 2020. We note that's an increase of 28% above last year. Notably, the salary which is CA$240.0k, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below CA$242m, reported a median total CEO compensation of CA$513k. That is to say, Ted Daniel is paid under the industry median. Furthermore, Ted Daniel directly owns CA$12m worth of shares in the company, implying that they are deeply invested in the company's success.

Component20202019Proportion (2020)
Salary CA$240k CA$240k 71%
Other CA$100k CA$25k 29%
Total CompensationCA$340k CA$265k100%

On an industry level, around 17% of total compensation represents salary and 83% is other remuneration. Titanium Transportation Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

TSXV:TTR CEO Compensation June 9th 2021

A Look at Titanium Transportation Group Inc.'s Growth Numbers

Titanium Transportation Group Inc.'s earnings per share (EPS) grew 54% per year over the last three years. Its revenue is up 40% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Titanium Transportation Group Inc. Been A Good Investment?

Most shareholders would probably be pleased with Titanium Transportation Group Inc. for providing a total return of 203% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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. We've identified 5 warning signs for Titanium Transportation Group that investors should be aware of in a dynamic business environment.

Switching gears from Titanium Transportation Group, 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. 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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