Yahoo Finance Is Dollarama Inc.'s (TSE:DOL) CEO Paid Enough Relative To Peers?
In 2016 Neil Rossy was appointed CEO of Dollarama Inc. (TSE:DOL). This analysis aims first to contrast CEO compensation with other large companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Dollarama
How Does Neil Rossy's Compensation Compare With Similar Sized Companies?
According to our data, Dollarama Inc. has a market capitalization of CA$15b, and pays its CEO total annual compensation worth CA$3.9m. (This is based on the year to February 2019). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$1.1m. We looked at a group of companies with market capitalizations over CA$11b and the median CEO total compensation was CA$9.0m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
Most shareholders would consider it a positive that Neil Rossy takes less in total compensation than the CEOs of most other large companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
The graphic below shows how CEO compensation at Dollarama has changed from year to year.
Is Dollarama Inc. Growing?
On average over the last three years, Dollarama Inc. has grown earnings per share (EPS) by 16% each year (using a line of best fit). Its revenue is up 9.0% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. You might want to check this free visual report on analyst forecasts for future earnings.
Has Dollarama Inc. Been A Good Investment?
Boasting a total shareholder return of 46% over three years, Dollarama Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
It appears that Dollarama Inc. remunerates its CEO below most large companies. Since the business is growing, many would argue this suggests the pay is modest. And given most shareholders are probably very happy with recent returns, you might even think that Neil Rossy deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying Dollarama shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
