Advertisement
Canada markets closed
  • S&P/TSX

    21,947.41
    +124.19 (+0.57%)
     
  • S&P 500

    5,127.79
    +63.59 (+1.26%)
     
  • DOW

    38,675.68
    +450.02 (+1.18%)
     
  • CAD/USD

    0.7308
    -0.0006 (-0.08%)
     
  • CRUDE OIL

    77.99
    -0.96 (-1.22%)
     
  • Bitcoin CAD

    86,203.80
    +5,165.38 (+6.37%)
     
  • CMC Crypto 200

    1,359.39
    +82.41 (+6.45%)
     
  • GOLD FUTURES

    2,310.10
    +0.50 (+0.02%)
     
  • RUSSELL 2000

    2,035.72
    +19.61 (+0.97%)
     
  • 10-Yr Bond

    4.5000
    -0.0710 (-1.55%)
     
  • NASDAQ

    16,156.33
    +315.37 (+1.99%)
     
  • VOLATILITY

    13.49
    -1.19 (-8.11%)
     
  • FTSE

    8,213.49
    +41.34 (+0.51%)
     
  • NIKKEI 225

    38,236.07
    -37.98 (-0.10%)
     
  • CAD/EUR

    0.6787
    -0.0030 (-0.44%)
     

Shareholders May Not Be So Generous With The Caldwell Partners International Inc.'s (TSE:CWL) CEO Compensation And Here's Why

CEO John Wallace has done a decent job of delivering relatively good performance at The Caldwell Partners International Inc. (TSE:CWL) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 21 February 2023. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Caldwell Partners International

Comparing The Caldwell Partners International Inc.'s CEO Compensation With The Industry

According to our data, The Caldwell Partners International Inc. has a market capitalization of CA$35m, and paid its CEO total annual compensation worth CA$1.2m over the year to August 2022. We note that's a decrease of 8.1% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$465k.

ADVERTISEMENT

For comparison, other companies in the Canada Professional Services industry with market capitalizations below CA$267m, reported a median total CEO compensation of CA$443k. This suggests that John Wallace is paid more than the median for the industry. What's more, John Wallace holds CA$1.0m worth of shares in the company in their own name.

Component

2022

2021

Proportion (2022)

Salary

CA$465k

CA$465k

38%

Other

CA$765k

CA$873k

62%

Total Compensation

CA$1.2m

CA$1.3m

100%

On an industry level, around 31% of total compensation represents salary and 69% is other remuneration. Caldwell Partners International is paying a higher share of its remuneration through a salary in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
ceo-compensation

A Look at The Caldwell Partners International Inc.'s Growth Numbers

The Caldwell Partners International Inc.'s earnings per share (EPS) grew 68% per year over the last three years. In the last year, its revenue changed by just 0.9%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 The Caldwell Partners International Inc. Been A Good Investment?

The Caldwell Partners International Inc. has not done too badly by shareholders, with a total return of 9.7%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Caldwell Partners International that you should be aware of before investing.

Switching gears from Caldwell Partners International, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here