Yahoo Finance Here's What We Learned About The CEO Pay At StorageVault Canada Inc. (CVE:SVI)
This article will reflect on the compensation paid to Steven Scott who has served as CEO of StorageVault Canada Inc. (CVE:SVI) since 2015. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for StorageVault Canada.
See our latest analysis for StorageVault Canada
How Does Total Compensation For Steven Scott Compare With Other Companies In The Industry?
At the time of writing, our data shows that StorageVault Canada Inc. has a market capitalization of CA$1.4b, and reported total annual CEO compensation of CA$1.2m for the year to December 2019. We note that's an increase of 47% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$250k.
In comparison with other companies in the industry with market capitalizations ranging from CA$520m to CA$2.1b, the reported median CEO total compensation was CA$1.8m. Accordingly, StorageVault Canada pays its CEO under the industry median. What's more, Steven Scott holds CA$1.4m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$250k | CA$136k | 21% |
Other | CA$924k | CA$665k | 79% |
Total Compensation | CA$1.2m | CA$801k | 100% |
On an industry level, roughly 46% of total compensation represents salary and 54% is other remuneration. It's interesting to note that StorageVault Canada allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
StorageVault Canada Inc.'s Growth
Over the last three years, StorageVault Canada Inc. has shrunk its earnings per share by 18% per year. Its revenue is up 21% over the last year.
The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has StorageVault Canada Inc. Been A Good Investment?
We think that the total shareholder return of 49%, over three years, would leave most StorageVault Canada Inc. shareholders smiling. 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.
To Conclude...
As we noted earlier, StorageVault Canada pays its CEO lower than the norm for similar-sized companies belonging to the same industry. And as we saw, revenue growth and shareholder returns have been rising On the flip side, EPS growth during the same period is negative. However, considering all aspects of performance, we've concluded Steven earns an appropriate compensation.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for StorageVault Canada that investors should look into moving forward.
Switching gears from StorageVault Canada, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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