Yahoo Finance Is Rogers Sugar Inc.’s (TSE:RSI) CEO Paid Enough Relative To Peers?
John Holliday became the CEO of Rogers Sugar Inc. (TSE:RSI) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Rogers Sugar
How Does John Holliday’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Rogers Sugar Inc. has a market cap of CA$579m, and is paying total annual CEO compensation of CA$1.1m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at CA$429k. We looked at a group of companies with market capitalizations from CA$267m to CA$1.1b, and the median CEO compensation was CA$1.4m.
So John Holliday is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Rogers Sugar has changed from year to year.
Is Rogers Sugar Inc. Growing?
Over the last three years Rogers Sugar Inc. has shrunk its earnings per share by an average of 6.2% per year. In the last year, its revenue is up 18%.
Few shareholders would be pleased to read that earnings per share are lower over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Rogers Sugar Inc. Been A Good Investment?
Most shareholders would probably be pleased with Rogers Sugar Inc. for providing a total return of 56% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
John Holliday is paid around the same as most CEOs of similar size companies.
We’re not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we doubt many are complaining about the fairly normal CEO pay. So you may want to check if insiders are buying Rogers Sugar shares with their own money (free access).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
