Yahoo Finance Our Take On Elysee Development's (CVE:ELC) CEO Salary
Guido Cloetens has been the CEO of Elysee Development Corp. (CVE:ELC) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for Elysee Development
Comparing Elysee Development Corp.'s CEO Compensation With the industry
Our data indicates that Elysee Development Corp. has a market capitalization of CA$11m, and total annual CEO compensation was reported as CA$179k for the year to December 2019. That's a notable decrease of 17% on last year. We note that the salary portion, which stands at CA$97.5k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the industry with market capitalizations below CA$261m, reported a median total CEO compensation of CA$243k. So it looks like Elysee Development compensates Guido Cloetens in line with the median for the industry.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$98k | CA$90k | 54% |
Other | CA$82k | CA$125k | 46% |
Total Compensation | CA$179k | CA$215k | 100% |
On an industry level, roughly 42% of total compensation represents salary and 58% is other remuneration. Elysee Development is paying a higher share of its remuneration through a salary in comparison to the overall 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.
Elysee Development Corp.'s Growth
Over the last three years, Elysee Development Corp. has shrunk its earnings per share by 28% per year. Its revenue is up 24% over the last year.
The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Elysee Development Corp. Been A Good Investment?
Boasting a total shareholder return of 54% over three years, Elysee Development Corp. 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 we touched on above, Elysee Development Corp. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Investors will be happy that Elysee Development has produced strong shareholder returns for the past three years. Meanwhile, revenues have been increasing recently However, on a concerning note, EPS is not growing. Considering overall performance, it's fair to say Guido is paid reasonably.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 7 warning signs for Elysee Development (of which 3 are concerning!) that you should know about in order to have a holistic understanding of the stock.
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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