Greg Engel has been the CEO of OrganiGram Holdings Inc. (TSE:OGI) since 2017. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Greg Engel's Compensation Compare With Similar Sized Companies?
According to our data, OrganiGram Holdings Inc. has a market capitalization of CA$585m, and paid its CEO total annual compensation worth CA$1.1m over the year to August 2019. That's a notable increase of 68% on last year. We think total compensation is more important but we note that the CEO salary is lower, at CA$299k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations from CA$265m to CA$1.1b, and the median CEO total compensation was CA$1.3m.
That means Greg Engel receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at OrganiGram Holdings has changed over time.
Is OrganiGram Holdings Inc. Growing?
On average over the last three years, OrganiGram Holdings Inc. has grown earnings per share (EPS) by 34% each year (using a line of best fit). In the last year, its revenue is up 314%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. You might want to check this free visual report on analyst forecasts for future earnings.
Has OrganiGram Holdings Inc. Been A Good Investment?
With a total shareholder return of 32% over three years, OrganiGram Holdings Inc. shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
Greg Engel is paid around the same as most CEOs of similar size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So upon reflection one could argue that the CEO pay is quite reasonable. So you may want to check if insiders are buying OrganiGram Holdings shares with their own money (free access).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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