Yahoo Finance Increases to CEO Compensation Might Be Put On Hold For Now at Algoma Central Corporation (TSE:ALC)
Key Insights
Algoma Central to hold its Annual General Meeting on 1st of May
Salary of CA$670.0k is part of CEO Gregg Ruhl's total remuneration
The overall pay is 432% above the industry average
Over the past three years, Algoma Central's EPS grew by 20% and over the past three years, the total shareholder return was 7.8%
Under the guidance of CEO Gregg Ruhl, Algoma Central Corporation (TSE:ALC) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 1st of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
Check out our latest analysis for Algoma Central
How Does Total Compensation For Gregg Ruhl Compare With Other Companies In The Industry?
At the time of writing, our data shows that Algoma Central Corporation has a market capitalization of CA$581m, and reported total annual CEO compensation of CA$2.3m for the year to December 2023. Notably, that's an increase of 11% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$670k.
In comparison with other companies in the Canada Shipping industry with market capitalizations ranging from CA$274m to CA$1.1b, the reported median CEO total compensation was CA$433k. This suggests that Gregg Ruhl is paid more than the median for the industry. Moreover, Gregg Ruhl also holds CA$118k worth of Algoma Central stock directly under their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$670k | CA$645k | 29% |
Other | CA$1.6m | CA$1.4m | 71% |
Total Compensation | CA$2.3m | CA$2.1m | 100% |
Talking in terms of the industry, salary represented approximately 21% of total compensation out of all the companies we analyzed, while other remuneration made up 79% of the pie. Algoma Central is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Algoma Central Corporation's Growth Numbers
Algoma Central Corporation has seen its earnings per share (EPS) increase by 20% a year over the past three years. Its revenue is up 6.4% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Algoma Central Corporation Been A Good Investment?
Algoma Central Corporation has generated a total shareholder return of 7.8% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. 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...
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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 4 warning signs for Algoma Central that investors should be aware of in a dynamic business environment.
Switching gears from Algoma Central, 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.
