Yahoo Finance What Did International Zeolite's (CVE:IZ) CEO Take Home Last Year?
Ray Paquette has been the CEO of International Zeolite Corp. (CVE:IZ) since 1999, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether International Zeolite pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for International Zeolite
How Does Total Compensation For Ray Paquette Compare With Other Companies In The Industry?
At the time of writing, our data shows that International Zeolite Corp. has a market capitalization of CA$4.9m, and reported total annual CEO compensation of CA$108k for the year to June 2020. That's mostly flat as compared to the prior year's compensation. Notably, the salary of CA$108k is the entirety of the CEO compensation.
In comparison with other companies in the industry with market capitalizations under CA$254m, the reported median total CEO compensation was CA$150k. From this we gather that Ray Paquette is paid around the median for CEOs in the industry. What's more, Ray Paquette holds CA$730k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2020 | 2019 | Proportion (2020) |
Salary | CA$108k | CA$108k | 100% |
Other | - | - | - |
Total Compensation | CA$108k | CA$108k | 100% |
On an industry level, around 93% of total compensation represents salary and 6.6% is other remuneration. At the company level, International Zeolite pays Ray Paquette solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
International Zeolite Corp.'s Growth
International Zeolite Corp.'s earnings per share (EPS) grew 61% per year over the last three years. It saw its revenue drop 19% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has International Zeolite Corp. Been A Good Investment?
With a three year total loss of 55% for the shareholders, International Zeolite Corp. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.
In Summary...
International Zeolite rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, International Zeolite Corp. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. At the same time, the company has logged negative shareholder returns over the last three years. However, EPS growth is positive over the same time frame. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 4 warning signs (and 3 which make us uncomfortable) in International Zeolite we think you should know about.
Important note: International Zeolite is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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. 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.
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