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Neil Bruce has been the CEO of SNC-Lavalin Group Inc. (TSE:SNC) since 2015. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Neil Bruce's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that SNC-Lavalin Group Inc. has a market cap of CA$6.0b, and is paying total annual CEO compensation of CA$6.3m. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$1.1m. We looked at a group of companies with market capitalizations from CA$2.7b to CA$8.6b, and the median CEO total compensation was CA$4.0m.
It would therefore appear that SNC-Lavalin Group Inc. pays Neil Bruce 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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at SNC-Lavalin Group, below.
Is SNC-Lavalin Group Inc. Growing?
Over the last three years SNC-Lavalin Group Inc. has shrunk its earnings per share by an average of 59% per year (measured with a line of best fit). In the last year, its revenue is up 8.0%.
Few shareholders would be pleased to read that earnings per share are lower over three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has SNC-Lavalin Group Inc. Been A Good Investment?
With a three year total loss of 22%, SNC-Lavalin Group Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared total CEO remuneration at SNC-Lavalin Group Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Arguably worse, investors are without a positive return for the last three years. This analysis suggests to us that the CEO is paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling SNC-Lavalin Group (free visualization of insider trades).
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.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.