Yahoo Finance Here's Why McCoy Global Inc.'s (TSE:MCB) CEO May Deserve A Raise
Key Insights
McCoy Global's Annual General Meeting to take place on 9th of May
Total pay for CEO Jim Rakievich includes CA$400.0k salary
Total compensation is 36% below industry average
McCoy Global's EPS grew by 86% over the past three years while total shareholder return over the past three years was 195%
The impressive results at McCoy Global Inc. (TSE:MCB) recently will be great news for shareholders. At the upcoming AGM on 9th of May, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.
See our latest analysis for McCoy Global
How Does Total Compensation For Jim Rakievich Compare With Other Companies In The Industry?
At the time of writing, our data shows that McCoy Global Inc. has a market capitalization of CA$51m, and reported total annual CEO compensation of CA$657k for the year to December 2023. That's a notable increase of 24% on last year. We note that the salary portion, which stands at CA$400.0k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the Canadian Energy Services industry with market capitalizations below CA$274m, reported a median total CEO compensation of CA$1.0m. That is to say, Jim Rakievich is paid under the industry median. What's more, Jim Rakievich holds CA$1.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$400k | CA$369k | 61% |
Other | CA$257k | CA$161k | 39% |
Total Compensation | CA$657k | CA$530k | 100% |
On an industry level, roughly 23% of total compensation represents salary and 77% is other remuneration. McCoy Global pays out 61% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
McCoy Global Inc.'s Growth
McCoy Global Inc. has seen its earnings per share (EPS) increase by 86% a year over the past three years. In the last year, its revenue is up 33%.
Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has McCoy Global Inc. Been A Good Investment?
We think that the total shareholder return of 195%, over three years, would leave most McCoy Global 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...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
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 did our research and spotted 3 warning signs for McCoy Global that investors should look into moving forward.
Switching gears from McCoy Global, 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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
