Yahoo Finance How Much Is Glen Eagle Resources Inc. (CVE:GER) CEO Getting Paid?
Jean Labrecque became the CEO of Glen Eagle Resources Inc. (CVE:GER) in 2005, and we think it's a good time to look at 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 Glen Eagle Resources.
View our latest analysis for Glen Eagle Resources
Comparing Glen Eagle Resources Inc.'s CEO Compensation With the industry
Our data indicates that Glen Eagle Resources Inc. has a market capitalization of CA$9.1m, and total annual CEO compensation was reported as CA$154k for the year to December 2019. That's a notable increase of 35% on last year. In particular, the salary of CA$114.0k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the industry with market capitalizations below CA$264m, we found that the median total CEO compensation was CA$156k. From this we gather that Jean Labrecque is paid around the median for CEOs in the industry. Furthermore, Jean Labrecque directly owns CA$329k worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$114k | CA$114k | 74% |
Other | CA$40k | - | 26% |
Total Compensation | CA$154k | CA$114k | 100% |
Talking in terms of the industry, salary represented approximately 83% of total compensation out of all the companies we analyzed, while other remuneration made up 17% of the pie. It's interesting to note that Glen Eagle Resources allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Glen Eagle Resources Inc.'s Growth Numbers
Glen Eagle Resources Inc. has reduced its earnings per share by 14% a year over the last three years. It achieved revenue growth of 9.4% over the last year.
The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Glen Eagle Resources Inc. Been A Good Investment?
Since shareholders would have lost about 54% over three years, some Glen Eagle Resources Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
To Conclude...
As we touched on above, Glen Eagle Resources 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. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 4 warning signs (and 1 which can't be ignored) in Glen Eagle Resources we think you should know about.
Switching gears from Glen Eagle Resources, 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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