Yahoo Finance What Does Environmental Waste International's (CVE:EWS) CEO Pay Reveal?
This article will reflect on the compensation paid to Bob MacBean who has served as CEO of Environmental Waste International Inc. (CVE:EWS) since 2014. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Environmental Waste International.
View our latest analysis for Environmental Waste International
Comparing Environmental Waste International Inc.'s CEO Compensation With the industry
According to our data, Environmental Waste International Inc. has a market capitalization of CA$13m, and paid its CEO total annual compensation worth CA$123k over the year to December 2019. We note that's a decrease of 24% compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth CA$123k.
On comparing similar-sized companies in the industry with market capitalizations below CA$264m, we found that the median total CEO compensation was CA$285k. This suggests that Bob MacBean is paid below the industry median.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$123k | CA$163k | 100% |
Other | - | - | - |
Total Compensation | CA$123k | CA$163k | 100% |
On an industry level, total compensation is equally proportioned between salary and other compensation, that is, they each represent approximately 50% of the total compensation. On a company level, Environmental Waste International prefers to reward its CEO through a salary, opting not to pay Bob MacBean through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Environmental Waste International Inc.'s Growth Numbers
Environmental Waste International Inc. has seen its earnings per share (EPS) increase by 5.8% a year over the past three years. In the last year, its revenue is up 11%.
This revenue growth could really point to a brighter future. And the modest growth in EPS isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Environmental Waste International Inc. Been A Good Investment?
We think that the total shareholder return of 33%, over three years, would leave most Environmental Waste International Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Environmental Waste International rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, Environmental Waste International Inc. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, shareholder returns have been have been very pleasing, over the last three years, and that should put a smile on the faces of investors. So, considering these tasty returns, CEO compensation seems quite appropriate.
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 5 warning signs (and 2 which are significant) in Environmental Waste International we think you should know about.
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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