Yahoo Finance Why We Think The CEO Of Supremex Inc. (TSE:SXP) May Soon See A Pay Rise
Key Insights
Supremex will host its Annual General Meeting on 9th of May
CEO Stewart Emerson's total compensation includes salary of CA$504.7k
Total compensation is 34% below industry average
Supremex's total shareholder return over the past three years was 102% while its EPS grew by 36% over the past three years
Shareholders will be pleased by the impressive results for Supremex Inc. (TSE:SXP) recently and CEO Stewart Emerson has played a key role. At the upcoming AGM on 9th of May, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.
See our latest analysis for Supremex
Comparing Supremex Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that Supremex Inc. has a market capitalization of CA$102m, and reported total annual CEO compensation of CA$929k for the year to December 2023. We note that's a decrease of 35% compared to last year. Notably, the salary which is CA$504.7k, represents a considerable chunk of the total compensation being paid.
On comparing similar-sized companies in the Canadian Forestry industry with market capitalizations below CA$274m, we found that the median total CEO compensation was CA$1.4m. That is to say, Stewart Emerson is paid under the industry median. Moreover, Stewart Emerson also holds CA$853k worth of Supremex stock directly under their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$505k | CA$485k | 54% |
Other | CA$424k | CA$947k | 46% |
Total Compensation | CA$929k | CA$1.4m | 100% |
Speaking on an industry level, nearly 38% of total compensation represents salary, while the remainder of 62% is other remuneration. It's interesting to note that Supremex pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Supremex Inc.'s Growth
Supremex Inc. has seen its earnings per share (EPS) increase by 36% a year over the past three years. Its revenue is up 11% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Supremex Inc. Been A Good Investment?
Most shareholders would probably be pleased with Supremex Inc. for providing a total return of 102% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
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 can have a massive impact on performance, but it's just one element. We did our research and spotted 4 warning signs for Supremex that investors should look into moving forward.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.
