Yahoo Finance Is BRP Inc.'s (TSE:DOO) CEO Paid At A Competitive Rate?
In 2003 José Boisjoli was appointed CEO of BRP Inc. (TSE:DOO). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for BRP
How Does José Boisjoli's Compensation Compare With Similar Sized Companies?
According to our data, BRP Inc. has a market capitalization of CA$6.6b, and paid its CEO total annual compensation worth CA$8.8m over the year to January 2019. While we always look at total compensation first, we note that the salary component is less, at CA$1.1m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from CA$5.3b to CA$16b, and the median CEO total compensation was CA$4.9m.
Thus we can conclude that José Boisjoli receives more in total compensation than the median of a group of companies in the same market, and of similar size to BRP Inc.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at BRP has changed from year to year.
Is BRP Inc. Growing?
Over the last three years BRP Inc. has grown its earnings per share (EPS) by an average of 21% per year (using a line of best fit). In the last year, its revenue is up 20%.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has BRP Inc. Been A Good Investment?
I think that the total shareholder return of 166%, over three years, would leave most BRP Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We compared the total CEO remuneration paid by BRP Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling BRP shares (free trial).
Important note: BRP 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.
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.
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. Thank you for reading.
