Yahoo Finance This Is Why We Think Metro Inc.'s (TSE:MRU) CEO Might Get A Pay Rise Approved By Shareholders
The decent performance at Metro Inc. (TSE:MRU) recently will please most shareholders as they go into the AGM coming up on 24 January 2023. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.
View our latest analysis for Metro
Comparing Metro Inc.'s CEO Compensation With The Industry
Our data indicates that Metro Inc. has a market capitalization of CA$17b, and total annual CEO compensation was reported as CA$5.4m for the year to September 2022. That's a modest increase of 6.8% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$1.0m.
In comparison with other companies in the Canadian Consumer Retailing industry with market capitalizations over CA$11b, the reported median total CEO compensation was CA$12m. Accordingly, Metro pays its CEO under the industry median. Furthermore, Eric La Fleche directly owns CA$20m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2022 | 2021 | Proportion (2022) |
Salary | CA$1.0m | CA$1.0m | 19% |
Other | CA$4.3m | CA$4.0m | 81% |
Total Compensation | CA$5.4m | CA$5.0m | 100% |
On an industry level, around 17% of total compensation represents salary and 83% is other remuneration. It's interesting to note that Metro pays out a greater portion of remuneration through salary, compared to the industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Metro Inc.'s Growth Numbers
Metro Inc.'s earnings per share (EPS) grew 8.8% per year over the last three years. Its revenue is up 3.3% over the last year.
We'd prefer higher revenue growth, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Metro Inc. Been A Good Investment?
Boasting a total shareholder return of 43% over three years, Metro Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Metro (free visualization of insider trades).
Switching gears from Metro, 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.
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.
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