Yahoo Finance Does CEMATRIX's (CVE:CVX) CEO Salary Compare Well With Industry Peers?
This article will reflect on the compensation paid to Jeff Kendrick who has served as CEO of CEMATRIX Corporation (CVE:CVX) since 2008. This analysis will also assess whether CEMATRIX pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for CEMATRIX
Comparing CEMATRIX Corporation's CEO Compensation With the industry
According to our data, CEMATRIX Corporation has a market capitalization of CA$26m, and paid its CEO total annual compensation worth CA$189k over the year to December 2019. That's a notable increase of 19% on last year. In particular, the salary of CA$154.7k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below CA$261m, reported a median total CEO compensation of CA$482k. This suggests that Jeff Kendrick is paid below the industry median. Moreover, Jeff Kendrick also holds CA$1.1m worth of CEMATRIX stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$155k | CA$151k | 82% |
Other | CA$35k | CA$9.0k | 18% |
Total Compensation | CA$189k | CA$160k | 100% |
Speaking on an industry level, nearly 57% of total compensation represents salary, while the remainder of 43% is other remuneration. According to our research, CEMATRIX has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
CEMATRIX Corporation's Growth
CEMATRIX Corporation's earnings per share (EPS) grew 35% per year over the last three years. It achieved revenue growth of 17% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 CEMATRIX Corporation Been A Good Investment?
Boasting a total shareholder return of 159% over three years, CEMATRIX Corporation has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
As previously discussed, Jeff is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 4 warning signs for CEMATRIX (1 is potentially serious!) that you should be aware of before investing here.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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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