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This article will reflect on the compensation paid to Murray Keating who has served as CEO of International Parkside Products Inc. (CVE:IPD) since 2008. This analysis will also assess whether International Parkside Products pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Comparing International Parkside Products Inc.'s CEO Compensation With the industry
Our data indicates that International Parkside Products Inc. has a market capitalization of CA$1.3m, and total annual CEO compensation was reported as CA$161k for the year to July 2020. This means that the compensation hasn't changed much from last year. In particular, the salary of CA$144.0k, 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$252m, reported a median total CEO compensation of CA$393k. This suggests that Murray Keating is paid below the industry median. Moreover, Murray Keating also holds CA$269k worth of International Parkside Products stock directly under their own name.
On an industry level, around 32% of total compensation represents salary and 68% is other remuneration. International Parkside Products is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
International Parkside Products Inc.'s Growth
Over the last three years, International Parkside Products Inc. has shrunk its earnings per share by 22% per year. In the last year, its revenue is down 17%.
Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has International Parkside Products Inc. Been A Good Investment?
Given the total shareholder loss of 46% over three years, many shareholders in International Parkside Products Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
As we touched on above, International Parkside Products Inc. is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Over the last three years, shareholder returns have been downright disappointing, and EPSgrowth has been equally disappointing. We can't say the CEO compensation is high, but shareholders will be cold to a bump at this stage, considering negative investor returns.
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 4 warning signs for International Parkside Products you should be aware of, and 2 of them shouldn't be ignored.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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