Yahoo Finance How Much Does JEMTEC's (CVE:JTC) CEO Make?
The CEO of JEMTEC Inc. (CVE:JTC) is Eric Caton, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for JEMTEC
How Does Total Compensation For Eric Caton Compare With Other Companies In The Industry?
According to our data, JEMTEC Inc. has a market capitalization of CA$5.2m, and paid its CEO total annual compensation worth CA$299k over the year to July 2020. We note that's a decrease of 15% compared to last year. Notably, the salary which is CA$252.0k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below CA$256m, we found that the median total CEO compensation was CA$276k. This suggests that JEMTEC remunerates its CEO largely in line with the industry average. What's more, Eric Caton holds CA$1.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2020 | 2019 | Proportion (2020) |
Salary | CA$252k | CA$252k | 84% |
Other | CA$47k | CA$100k | 16% |
Total Compensation | CA$299k | CA$352k | 100% |
Talking in terms of the industry, salary represented approximately 77% of total compensation out of all the companies we analyzed, while other remuneration made up 23% of the pie. Although there is a difference in how total compensation is set, JEMTEC more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
JEMTEC Inc.'s Growth
JEMTEC Inc. has seen its earnings per share (EPS) increase by 138% a year over the past three years. In the last year, its revenue is up 1.2%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has JEMTEC Inc. Been A Good Investment?
We think that the total shareholder return of 276%, over three years, would leave most JEMTEC Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
As we touched on above, JEMTEC Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. The company is growing EPS and total shareholder returns have been pleasing. Indeed, many might consider that Eric is compensated rather modestly, given the solid company performance! Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 4 warning signs for JEMTEC (1 can't be ignored!) that you should be aware of before investing here.
Switching gears from JEMTEC, 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.
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.
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