Yahoo Finance Shareholders Will Probably Hold Off On Increasing Chemtrade Logistics Income Fund's (TSE:CHE.UN) CEO Compensation For The Time Being
Key Insights
Chemtrade Logistics Income Fund will host its Annual General Meeting on 16th of May
Salary of CA$987.5k is part of CEO Scott Rook's total remuneration
The total compensation is 42% higher than the average for the industry
Chemtrade Logistics Income Fund's EPS grew by 96% over the past three years while total shareholder return over the past three years was 48%
Under the guidance of CEO Scott Rook, Chemtrade Logistics Income Fund (TSE:CHE.UN) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 16th of May. However, some shareholders will still be cautious of paying the CEO excessively.
See our latest analysis for Chemtrade Logistics Income Fund
How Does Total Compensation For Scott Rook Compare With Other Companies In The Industry?
Our data indicates that Chemtrade Logistics Income Fund has a market capitalization of CA$1.0b, and total annual CEO compensation was reported as CA$8.7m for the year to December 2023. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$988k.
In comparison with other companies in the Canadian Chemicals industry with market capitalizations ranging from CA$549m to CA$2.2b, the reported median CEO total compensation was CA$6.2m. Hence, we can conclude that Scott Rook is remunerated higher than the industry median. Moreover, Scott Rook also holds CA$974k worth of Chemtrade Logistics Income Fund stock directly under their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$988k | CA$913k | 11% |
Other | CA$7.8m | CA$7.7m | 89% |
Total Compensation | CA$8.7m | CA$8.6m | 100% |
On an industry level, around 72% of total compensation represents salary and 28% is other remuneration. It's interesting to note that Chemtrade Logistics Income Fund allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Chemtrade Logistics Income Fund's Growth Numbers
Chemtrade Logistics Income Fund has seen its earnings per share (EPS) increase by 96% a year over the past three years. Its revenue is up 1.8% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Chemtrade Logistics Income Fund Been A Good Investment?
Boasting a total shareholder return of 48% over three years, Chemtrade Logistics Income Fund has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Chemtrade Logistics Income Fund (1 makes us a bit uncomfortable!) that you should be aware of before investing here.
Switching gears from Chemtrade Logistics Income Fund, 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.
