Yahoo Finance We Think Shareholders Are Less Likely To Approve A Pay Rise For Martinrea International Inc.'s (TSE:MRE) CEO For Now
Key Insights
Martinrea International's Annual General Meeting to take place on 12th of June
CEO Pat D'Eramo's total compensation includes salary of CA$817.9k
Total compensation is similar to the industry average
Martinrea International's EPS grew by 46% over the past three years while total shareholder loss over the past three years was 6.6%
In the past three years, shareholders of Martinrea International Inc. (TSE:MRE) have seen a loss on their investment. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 12th of June. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
View our latest analysis for Martinrea International
How Does Total Compensation For Pat D'Eramo Compare With Other Companies In The Industry?
According to our data, Martinrea International Inc. has a market capitalization of CA$927m, and paid its CEO total annual compensation worth CA$4.7m over the year to December 2023. That's a notable increase of 15% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$818k.
For comparison, other companies in the Canada Auto Components industry with market capitalizations ranging between CA$547m and CA$2.2b had a median total CEO compensation of CA$3.7m. So it looks like Martinrea International compensates Pat D'Eramo in line with the median for the industry. Moreover, Pat D'Eramo also holds CA$3.3m worth of Martinrea International 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$818k | CA$818k | 17% |
Other | CA$3.9m | CA$3.3m | 83% |
Total Compensation | CA$4.7m | CA$4.1m | 100% |
Speaking on an industry level, nearly 17% of total compensation represents salary, while the remainder of 83% is other remuneration. There isn't a significant difference between Martinrea International and the broader market, in terms of salary allocation in the overall compensation package. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Martinrea International Inc.'s Growth Numbers
Martinrea International Inc.'s earnings per share (EPS) grew 46% per year over the last three years. In the last year, its revenue is up 9.2%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Martinrea International Inc. Been A Good Investment?
With a three year total loss of 6.6% for the shareholders, Martinrea International Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Martinrea International that you should be aware of before investing.
Switching gears from Martinrea 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.
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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.
