Yahoo Finance Here's Why Shareholders May Want To Be Cautious With Increasing Ginger Beef Corporation's (CVE:GB) CEO Pay Packet
Performance at Ginger Beef Corporation (CVE:GB) has been reasonably good and CEO Stanley Leung has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 30 June 2021. However, some shareholders may still want to keep CEO compensation within reason.
See our latest analysis for Ginger Beef
How Does Total Compensation For Stanley Leung Compare With Other Companies In The Industry?
Our data indicates that Ginger Beef Corporation has a market capitalization of CA$5.2m, and total annual CEO compensation was reported as CA$260k for the year to December 2020. We note that's an increase of 19% above last year. 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$247m, we found that the median total CEO compensation was CA$191k. Hence, we can conclude that Stanley Leung is remunerated higher than the industry median. Furthermore, Stanley Leung directly owns CA$2.8m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2020 | 2019 | Proportion (2020) |
Salary | CA$93k | CA$93k | 36% |
Other | CA$167k | CA$125k | 64% |
Total Compensation | CA$260k | CA$218k | 100% |
On an industry level, around 59% of total compensation represents salary and 41% is other remuneration. Ginger Beef sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Ginger Beef Corporation's Growth
Ginger Beef Corporation's earnings per share (EPS) grew 42% per year over the last three years. In the last year, its revenue is down 1.4%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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?
Boasting a total shareholder return of 168% over three years, Ginger Beef Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
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. We identified 3 warning signs for Ginger Beef (2 can't be ignored!) that you should be aware of before investing here.
Switching gears from Ginger Beef, 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
