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Is Andrew Peller Limited's (TSE:ADW.A) CEO Pay Fair?

John Peller is the CEO of Andrew Peller Limited (TSE:ADW.A). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Andrew Peller

How Does John Peller's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Andrew Peller Limited has a market cap of CA$576m, and reported total annual CEO compensation of CA$1.5m for the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at CA$670k. When we examined a selection of companies with market caps ranging from CA$263m to CA$1.1b, we found the median CEO total compensation was CA$1.5m.

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So John Peller is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Andrew Peller has changed over time.

TSX:ADW.A CEO Compensation, November 1st 2019
TSX:ADW.A CEO Compensation, November 1st 2019

Is Andrew Peller Limited Growing?

Andrew Peller Limited saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. It achieved revenue growth of 2.9% over the last year.

I'd prefer higher revenue growth, but the modest improvement in EPS is good. Considering these factors I'd say performance has been pretty decent, though not amazing. Shareholders might be interested in this free visualization of analyst forecasts.

Has Andrew Peller Limited Been A Good Investment?

With a total shareholder return of 28% over three years, Andrew Peller Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

John Peller is paid around the same as most CEOs of similar size companies.

The company isn't showing particularly great growth, and shareholder turns haven't been particularly inspiring in the last few years. But we don't think the CEO compensation is a problem. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Andrew Peller (free visualization of insider trades).

Important note: Andrew Peller may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.