J. Eadie is the CEO of Jade Power Trust (CVE:JPWR.UN), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Jade Power Trust.
See our latest analysis for Jade Power Trust
How Does Total Compensation For J. Eadie Compare With Other Companies In The Industry?
At the time of writing, our data shows that Jade Power Trust has a market capitalization of CA$31m, and reported total annual CEO compensation of CA$453k for the year to December 2019. That's a notable increase of 9.6% on last year. Notably, the salary which is CA$240.6k, represents most of the total compensation being paid.
For comparison, other companies in the industry with market capitalizations below CA$256m, reported a median total CEO compensation of CA$344k. Hence, we can conclude that J. Eadie is remunerated higher than the industry median.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | CA$241k | CA$229k | 53% |
| Other | CA$213k | CA$185k | 47% |
| Total Compensation | CA$453k | CA$413k | 100% |
Speaking on an industry level, nearly 45% of total compensation represents salary, while the remainder of 55% is other remuneration. Jade Power Trust pays out 53% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Jade Power Trust's Growth Numbers
Jade Power Trust's earnings per share (EPS) grew 122% per year over the last three years. In the last year, its revenue is up 17%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Jade Power Trust Been A Good Investment?
Since shareholders would have lost about 79% over three years, some Jade Power Trust investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
As we touched on above, Jade Power Trust is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, we must not forget that the EPS growth has been very strong, but shareholder returns — over the same period — have been disappointing. Although we'd stop short of calling it inappropriate, we think J. is earning a very handsome sum.
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 did our research and spotted 3 warning signs for Jade Power Trust that investors should look into moving forward.
Switching gears from Jade Power Trust, 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.
When trading Jade Power Trust or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted
New: Manage All Your Stock Portfolios in One Place
We've created the ultimate portfolio companion for stock investors, and it's free.
• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks
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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
About TSXV:JPWR.H
Adequate balance sheet slight.
