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How Should Investors React To Manitex Capital Inc.'s (CVE:MNX) CEO Pay?

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Simply Wall St
·3 min read
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The CEO of Manitex Capital Inc. (CVE:MNX) is Steve Saviuk. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Manitex Capital

How Does Steve Saviuk's Compensation Compare With Similar Sized Companies?

According to our data, Manitex Capital Inc. has a market capitalization of CA$3.1m, and paid its CEO total annual compensation worth CA$344k over the year to October 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$150k. We examined a group of similar sized companies, with market capitalizations of below CA$283m. The median CEO total compensation in that group is CA$219k.

Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Manitex Capital stands. On a sector level, around 56% of total compensation represents salary and 44% is other remuneration. Manitex Capital is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation

It would therefore appear that Manitex Capital Inc. pays Steve Saviuk more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous. You can see a visual representation of the CEO compensation at Manitex Capital, below.

TSXV:MNX CEO Compensation May 7th 2020
TSXV:MNX CEO Compensation May 7th 2020

Is Manitex Capital Inc. Growing?

Manitex Capital Inc. has seen earnings per share (EPS) move positively by an average of 12% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 285%.

This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Manitex Capital Inc. Been A Good Investment?

With a three year total loss of 50%, Manitex Capital Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We examined the amount Manitex Capital Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. While EPS is moving in the right direction, we'd say shareholders would want better returns before the CEO is paid much more. Moving away from CEO compensation for the moment, we've identified 4 warning signs for Manitex Capital that you should be aware of before investing.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.