Yahoo Finance What We Learned About WestBond Enterprises' (CVE:WBE) CEO Pay
The CEO of WestBond Enterprises Corporation (CVE:WBE) is Gennaro Magistrale, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for WestBond Enterprises.
View our latest analysis for WestBond Enterprises
Comparing WestBond Enterprises Corporation's CEO Compensation With the industry
At the time of writing, our data shows that WestBond Enterprises Corporation has a market capitalization of CA$30m, and reported total annual CEO compensation of CA$271k for the year to March 2020. That's just a smallish increase of 4.5% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$114k.
In comparison with other companies in the industry with market capitalizations under CA$255m, the reported median total CEO compensation was CA$227k. So it looks like WestBond Enterprises compensates Gennaro Magistrale in line with the median for the industry. Furthermore, Gennaro Magistrale directly owns CA$7.0m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2020 | 2019 | Proportion (2020) |
Salary | CA$114k | CA$113k | 42% |
Other | CA$157k | CA$146k | 58% |
Total Compensation | CA$271k | CA$260k | 100% |
On an industry level, roughly 45% of total compensation represents salary and 55% is other remuneration. Our data reveals that WestBond Enterprises allocates salary more or less in line with the wider market. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
WestBond Enterprises Corporation's Growth
WestBond Enterprises Corporation has seen its earnings per share (EPS) increase by 62% a year over the past three years. Its revenue is down 3.4% over the previous year.
Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has WestBond Enterprises Corporation Been A Good Investment?
Most shareholders would probably be pleased with WestBond Enterprises Corporation for providing a total return of 851% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
As previously discussed, Gennaro is compensated close to the median for companies of its size, and which belong to the same industry. Investors would surely be happy to see that returns have been great, and that EPS is up. So one could argue that CEO compensation is quite modest, if you consider company performance! Also, such solid returns might lead to shareholders warming to the idea of a bump in pay.
CEO compensation can have a massive impact on performance, but it's just one element. We've identified 3 warning signs for WestBond Enterprises that investors should be aware of in a dynamic business environment.
Important note: WestBond Enterprises is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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@simplywallst.com.
