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What Did GDI Integrated Facility Services Inc.’s (TSE:GDI) CEO Take Home Last Year?

In 2004 Claude Bigras was appointed CEO of GDI Integrated Facility Services Inc. (TSE:GDI). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for GDI Integrated Facility Services

How Does Claude Bigras’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that GDI Integrated Facility Services Inc. has a market cap of CA$388m, and is paying total annual CEO compensation of CA$1.6m. (This number is for the twelve months until 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$558k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$134m to CA$537m. The median total CEO compensation was CA$950k.

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Thus we can conclude that Claude Bigras receives more in total compensation than the median of a group of companies in the same market, and of similar size to GDI Integrated Facility Services 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 GDI Integrated Facility Services has changed from year to year.

TSX:GDI CEO Compensation December 12th 18
TSX:GDI CEO Compensation December 12th 18

Is GDI Integrated Facility Services Inc. Growing?

On average over the last three years, GDI Integrated Facility Services Inc. has grown earnings per share (EPS) by 65% each year. Its revenue is up 10% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.

It could be important to check this free visual depiction of what analysts expect for the future.

Has GDI Integrated Facility Services Inc. Been A Good Investment?

I think that the total shareholder return of 34%, over three years, would leave most GDI Integrated Facility Services Inc. shareholders smiling. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.

In Summary…

We examined the amount GDI Integrated Facility Services Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However we must not forget that the EPS growth has been very strong over three years. 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 GDI Integrated Facility Services shares (free trial).

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.