Yahoo Finance Here's Why Shareholders Should Examine Jewett-Cameron Trading Company Ltd.'s (NASDAQ:JCTC.F) CEO Compensation Package More Closely
Key Insights
Jewett-Cameron Trading will host its Annual General Meeting on 23rd of February
Salary of US$295.8k is part of CEO Chad Summers's total remuneration
Total compensation is similar to the industry average
Jewett-Cameron Trading's three-year loss to shareholders was 46% while its EPS was down 26% over the past three years
Shareholders will probably not be too impressed with the underwhelming results at Jewett-Cameron Trading Company Ltd. (NASDAQ:JCTC.F) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 23rd of February. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.
Check out our latest analysis for Jewett-Cameron Trading
Comparing Jewett-Cameron Trading Company Ltd.'s CEO Compensation With The Industry
According to our data, Jewett-Cameron Trading Company Ltd. has a market capitalization of US$20m, and paid its CEO total annual compensation worth US$386k over the year to August 2023. Notably, that's a decrease of 31% over the year before. We note that the salary portion, which stands at US$295.8k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the American Building industry with market capitalizations under US$200m, the reported median total CEO compensation was US$386k. This suggests that Jewett-Cameron Trading remunerates its CEO largely in line with the industry average.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$296k | US$267k | 77% |
Other | US$91k | US$294k | 23% |
Total Compensation | US$386k | US$560k | 100% |
On an industry level, around 17% of total compensation represents salary and 83% is other remuneration. Jewett-Cameron Trading is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Jewett-Cameron Trading Company Ltd.'s Growth
Jewett-Cameron Trading Company Ltd. has reduced its earnings per share by 26% a year over the last three years. It saw its revenue drop 18% over the last year.
The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Jewett-Cameron Trading Company Ltd. Been A Good Investment?
With a total shareholder return of -46% over three years, Jewett-Cameron Trading Company Ltd. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 3 warning signs for Jewett-Cameron Trading you should be aware of, and 1 of them makes us a bit uncomfortable.
Important note: Jewett-Cameron Trading is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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.
