Yahoo Finance Is good natured Products Inc.'s (CVE:GDNP) CEO Pay Justified?
Paul Antoniadis became the CEO of good natured Products Inc. (CVE:GDNP) in 2015. First, this article will compare CEO compensation with compensation at similar sized 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.
See our latest analysis for good natured Products
How Does Paul Antoniadis's Compensation Compare With Similar Sized Companies?
According to our data, good natured Products Inc. has a market capitalization of CA$15m, and paid its CEO total annual compensation worth CA$224k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CA$188k. We took a group of companies with market capitalizations below CA$282m, and calculated the median CEO total compensation to be CA$219k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where good natured Products stands. On a sector level, around 73% of total compensation represents salary and 27% is other remuneration. good natured Products is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation
So Paul Antoniadis receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. The graphic below shows how CEO compensation at good natured Products has changed from year to year.
Is good natured Products Inc. Growing?
good natured Products Inc. has seen earnings per share (EPS) move positively by an average of 24% a year, over the last three years (using a line of best fit). It achieved revenue growth of 108% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has good natured Products Inc. Been A Good Investment?
good natured Products Inc. has not done too badly by shareholders, with a total return of 7.7%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
Paul Antoniadis is paid around what is normal for the leaders of comparable size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. As a result of these considerations, I would suggest the CEO pay is reasonable. CEO compensation is an important area to keep your eyes on, but we've also identified 5 warning signs for good natured Products (1 can't be ignored!) that you should be aware of before investing here.
Important note: good natured Products may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
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