Yahoo Finance We Think Some Shareholders May Hesitate To Increase Postmedia Network Canada Corp.'s (TSE:PNC.B) CEO Compensation
Under the guidance of CEO Andrew MacLeod, Postmedia Network Canada Corp. (TSE:PNC.B) has performed reasonably well recently. As shareholders go into the upcoming AGM on 10 February 2022, 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 want to keep CEO compensation within reason.
See our latest analysis for Postmedia Network Canada
Comparing Postmedia Network Canada Corp.'s CEO Compensation With the industry
Our data indicates that Postmedia Network Canada Corp. has a market capitalization of CA$150m, and total annual CEO compensation was reported as CA$3.5m for the year to August 2021. We note that's an increase of 79% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$900k.
In comparison with other companies in the industry with market capitalizations under CA$253m, the reported median total CEO compensation was CA$307k. This suggests that Andrew MacLeod is paid more than the median for the industry.
Component | 2021 | 2020 | Proportion (2021) |
Salary | CA$900k | CA$855k | 26% |
Other | CA$2.6m | CA$1.1m | 74% |
Total Compensation | CA$3.5m | CA$2.0m | 100% |
On an industry level, around 67% of total compensation represents salary and 33% is other remuneration. It's interesting to note that Postmedia Network Canada allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Postmedia Network Canada Corp.'s Growth
Over the past three years, Postmedia Network Canada Corp. has seen its earnings per share (EPS) grow by 84% per year. It saw its revenue drop 5.4% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Postmedia Network Canada Corp. Been A Good Investment?
We think that the total shareholder return of 58%, over three years, would leave most Postmedia Network Canada Corp. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
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 1 warning sign for Postmedia Network Canada that investors should think about before committing capital to this stock.
Important note: Postmedia Network Canada is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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.
