Yahoo Finance How Is Ginger Beef's (CVE:GB) CEO Compensated?
The CEO of Ginger Beef Corporation (CVE:GB) is Stanley Leung, and this article examines the executive's compensation against the backdrop of overall company performance. 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 Ginger Beef
How Does Total Compensation For Stanley Leung Compare With Other Companies In The Industry?
At the time of writing, our data shows that Ginger Beef Corporation has a market capitalization of CA$2.7m, and reported total annual CEO compensation of CA$218k for the year to December 2019. Notably, that's an increase of 42% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$93k.
On comparing similar-sized companies in the industry with market capitalizations below CA$261m, we found that the median total CEO compensation was CA$306k. From this we gather that Stanley Leung is paid around the median for CEOs in the industry. Moreover, Stanley Leung also holds CA$1.7m worth of Ginger Beef 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$93k | CA$93k | 43% |
Other | CA$125k | CA$60k | 57% |
Total Compensation | CA$218k | CA$153k | 100% |
Talking in terms of the industry, salary represented approximately 43% of total compensation out of all the companies we analyzed, while other remuneration made up 57% of the pie. Our data reveals that Ginger Beef allocates salary more or less in line with the wider market. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Ginger Beef Corporation's Growth
Over the past three years, Ginger Beef Corporation has seen its earnings per share (EPS) grow by 31% per year. In the last year, its revenue is up 2.7%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Ginger Beef Corporation Been A Good Investment?
Most shareholders would probably be pleased with Ginger Beef Corporation for providing a total return of 36% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
As previously discussed, Stanley is compensated close to the median for companies of its size, and which belong to the same industry. Investors would surely be happy to see that returns have been great, and that EPS is up. So one could argue that CEO compensation is quite modest, if you consider company performance! Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Ginger Beef that investors should be aware of in a dynamic business environment.
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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