Yahoo Finance We Discuss Why Andrew Peller Limited's (TSE:ADW.A) CEO Compensation May Be Closely Reviewed
Shareholders will probably not be too impressed with the underwhelming results at Andrew Peller Limited (TSE:ADW.A) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 08 September 2021. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.
See our latest analysis for Andrew Peller
Comparing Andrew Peller Limited's CEO Compensation With the industry
According to our data, Andrew Peller Limited has a market capitalization of CA$393m, and paid its CEO total annual compensation worth CA$1.9m over the year to March 2021. Notably, that's an increase of 14% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$683k.
On examining similar-sized companies in the industry with market capitalizations between CA$252m and CA$1.0b, we discovered that the median CEO total compensation of that group was CA$479k. This suggests that John Peller is paid more than the median for the industry. Furthermore, John Peller directly owns CA$47m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2021 | 2020 | Proportion (2021) |
Salary | CA$683k | CA$683k | 37% |
Other | CA$1.2m | CA$952k | 63% |
Total Compensation | CA$1.9m | CA$1.6m | 100% |
On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. It's interesting to note that Andrew Peller allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Andrew Peller Limited's Growth
Over the last three years, Andrew Peller Limited has shrunk its earnings per share by 12% per year. In the last year, its revenue changed by just 0.4%.
The decline in EPS is a bit concerning. And the flat revenue hardly impresses. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Andrew Peller Limited Been A Good Investment?
With a total shareholder return of -45% over three years, Andrew Peller Limited shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Andrew Peller that investors should look into moving forward.
Important note: Andrew Peller 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. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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