Yahoo Finance Here's Why We Think CCL Industries Inc.'s (TSE:CCL.B) CEO Compensation Looks Fair
Key Insights
CCL Industries to hold its Annual General Meeting on 9th of May
CEO Geoffrey Martin's total compensation includes salary of CA$1.85m
The overall pay is 51% below the industry average
CCL Industries' EPS declined by 0.09% over the past three years while total shareholder return over the past three years was 5.0%
Performance at CCL Industries Inc. (TSE:CCL.B) has been rather uninspiring recently and shareholders may be wondering how CEO Geoffrey Martin plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 9th of May. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.
View our latest analysis for CCL Industries
How Does Total Compensation For Geoffrey Martin Compare With Other Companies In The Industry?
At the time of writing, our data shows that CCL Industries Inc. has a market capitalization of CA$13b, and reported total annual CEO compensation of CA$5.7m for the year to December 2023. That's a slight decrease of 7.0% on the prior year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$1.9m.
For comparison, other companies in the Canadian Packaging industry with market capitalizations ranging between CA$5.5b and CA$16b had a median total CEO compensation of CA$12m. This suggests that Geoffrey Martin is paid below the industry median. Moreover, Geoffrey Martin also holds CA$48m worth of CCL Industries stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$1.9m | CA$1.7m | 32% |
Other | CA$3.9m | CA$4.5m | 68% |
Total Compensation | CA$5.7m | CA$6.2m | 100% |
Speaking on an industry level, nearly 38% of total compensation represents salary, while the remainder of 62% is other remuneration. It's interesting to note that CCL Industries allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at CCL Industries Inc.'s Growth Numbers
CCL Industries Inc. saw earnings per share stay pretty flat over the last three years. In the last year, its revenue is up 4.2%.
The lack of EPS growth is certainly uninspiring. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 CCL Industries Inc. Been A Good Investment?
With a total shareholder return of 5.0% over three years, CCL Industries Inc. has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.
To Conclude...
Shareholder returns while positive, need to be looked at along with earnings, which have failed to grow and this could mean that the current momentum may not continue. These are are some concerns that shareholders may want to address the board when they revisit their investment thesis.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for CCL Industries that investors should be aware of in a dynamic business environment.
Switching gears from CCL Industries, 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.
