Yahoo Finance We Think Shareholders Will Probably Be Generous With Great-West Lifeco Inc.'s (TSE:GWO) CEO Compensation
Key Insights
Great-West Lifeco's Annual General Meeting to take place on 10th of May
Total pay for CEO Paul Mahon includes CA$1.26m salary
The total compensation is similar to the average for the industry
Great-West Lifeco's total shareholder return over the past three years was 108% while its EPS grew by 11% over the past three years
It would be hard to discount the role that CEO Paul Mahon has played in delivering the impressive results at Great-West Lifeco Inc. (TSE:GWO) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 10th of May. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
View our latest analysis for Great-West Lifeco
Comparing Great-West Lifeco Inc.'s CEO Compensation With The Industry
According to our data, Great-West Lifeco Inc. has a market capitalization of CA$36b, and paid its CEO total annual compensation worth CA$9.9m over the year to December 2022. Notably, that's an increase of 9.4% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$1.3m.
For comparison, other companies in the Canadian Insurance industry with market capitalizations above CA$11b, reported a median total CEO compensation of CA$11m. This suggests that Great-West Lifeco remunerates its CEO largely in line with the industry average. Moreover, Paul Mahon also holds CA$8.9m worth of Great-West Lifeco stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2022 | 2021 | Proportion (2022) |
Salary | CA$1.3m | CA$1.3m | 13% |
Other | CA$8.7m | CA$7.8m | 87% |
Total Compensation | CA$9.9m | CA$9.1m | 100% |
Talking in terms of the industry, salary represented approximately 23% of total compensation out of all the companies we analyzed, while other remuneration made up 77% of the pie. Great-West Lifeco sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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 Great-West Lifeco Inc.'s Growth Numbers
Great-West Lifeco Inc.'s earnings per share (EPS) grew 11% per year over the last three years. In the last year, its revenue is down 31%.
Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Great-West Lifeco Inc. Been A Good Investment?
Boasting a total shareholder return of 108% over three years, Great-West Lifeco Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Great-West Lifeco (free visualization of insider trades).
Important note: Great-West Lifeco 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.
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