Yahoo Finance We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Canadian Utilities Limited's (TSE:CU) CEO For Now
Key Insights
Canadian Utilities to hold its Annual General Meeting on 8th of May
Total pay for CEO Nancy Southern includes CA$890.0k salary
The overall pay is 185% above the industry average
Over the past three years, Canadian Utilities' EPS grew by 21% and over the past three years, the total shareholder return was 2.9%
Performance at Canadian Utilities Limited (TSE:CU) has been reasonably good and CEO Nancy Southern has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 8th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
See our latest analysis for Canadian Utilities
Comparing Canadian Utilities Limited's CEO Compensation With The Industry
Our data indicates that Canadian Utilities Limited has a market capitalization of CA$8.3b, and total annual CEO compensation was reported as CA$4.9m for the year to December 2023. That's a modest increase of 5.4% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$890k.
On comparing similar companies from the Canada Integrated Utilities industry with market caps ranging from CA$5.5b to CA$17b, we found that the median CEO total compensation was CA$1.7m. Accordingly, our analysis reveals that Canadian Utilities Limited pays Nancy Southern north of the industry median. Moreover, Nancy Southern also holds CA$7.9m worth of Canadian Utilities stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$890k | CA$890k | 18% |
Other | CA$4.0m | CA$3.8m | 82% |
Total Compensation | CA$4.9m | CA$4.7m | 100% |
On an industry level, around 14% of total compensation represents salary and 86% is other remuneration. Canadian Utilities pays out 18% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Canadian Utilities Limited's Growth
Over the past three years, Canadian Utilities Limited has seen its earnings per share (EPS) grow by 21% per year. Its revenue is down 6.2% over the previous year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Canadian Utilities Limited Been A Good Investment?
Canadian Utilities Limited has not done too badly by shareholders, with a total return of 2.9%, over three years. It would be nice to see that metric improve in the future. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.
To Conclude...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
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 2 warning signs (and 1 which makes us a bit uncomfortable) in Canadian Utilities we think you should know about.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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.
