Amar Doman has been the CEO of CanWel Building Materials Group Ltd. (TSE:CWX) since 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Amar Doman's Compensation Compare With Similar Sized Companies?
Our data indicates that CanWel Building Materials Group Ltd. is worth CA$430m, and total annual CEO compensation was reported as CA$902k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$600k. We examined companies with market caps from CA$264m to CA$1.1b, and discovered that the median CEO total compensation of that group was CA$1.3m.
That means Amar Doman receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at CanWel Building Materials Group has changed from year to year.
Is CanWel Building Materials Group Ltd. Growing?
Over the last three years CanWel Building Materials Group Ltd. has shrunk its earnings per share by an average of 42% per year (measured with a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue hardly impresses. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has CanWel Building Materials Group Ltd. Been A Good Investment?
With a total shareholder return of 23% over three years, CanWel Building Materials Group Ltd. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Amar Doman is paid around what is normal the leaders of comparable size companies.
The company isn't growing earnings per share, and nor have the total returns inspired us. We're not saying the CEO pay is too generous, but it's probably fair to say that many shareholders would like to see improved performance, before any pay rise occurs. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling CanWel Building Materials Group (free visualization of insider trades).
Important note: CanWel Building Materials Group 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.
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