Yahoo Finance It's Unlikely That Sherritt International Corporation's (TSE:S) CEO Will See A Huge Pay Rise This Year
Key Insights
Sherritt International's Annual General Meeting to take place on 9th of May
CEO Leon Binedell's total compensation includes salary of CA$672.5k
The total compensation is 1,159% higher than the average for the industry
Sherritt International's EPS grew by 44% over the past three years while total shareholder loss over the past three years was 46%
Shareholders of Sherritt International Corporation (TSE:S) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 9th of May. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.
See our latest analysis for Sherritt International
Comparing Sherritt International Corporation's CEO Compensation With The Industry
According to our data, Sherritt International Corporation has a market capitalization of CA$123m, and paid its CEO total annual compensation worth CA$2.3m over the year to December 2023. We note that's a decrease of 17% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$673k.
For comparison, other companies in the Canadian Metals and Mining industry with market capitalizations below CA$274m, reported a median total CEO compensation of CA$186k. This suggests that Leon Binedell is paid more than the median for the industry. Moreover, Leon Binedell also holds CA$144k worth of Sherritt International stock directly under their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$673k | CA$598k | 29% |
Other | CA$1.7m | CA$2.2m | 71% |
Total Compensation | CA$2.3m | CA$2.8m | 100% |
Speaking on an industry level, nearly 94% of total compensation represents salary, while the remainder of 6% is other remuneration. Sherritt International pays a modest slice of remuneration through salary, as compared 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 Sherritt International Corporation's Growth Numbers
Over the past three years, Sherritt International Corporation has seen its earnings per share (EPS) grow by 44% per year. In the last year, its revenue is up 25%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Sherritt International Corporation Been A Good Investment?
Few Sherritt International Corporation shareholders would feel satisfied with the return of -46% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Sherritt International that you should be aware of before investing.
Switching gears from Sherritt International, 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.
