Yahoo Finance Should You Worry About GDI Integrated Facility Services Inc.'s (TSE:GDI) CEO Salary Level?
Claude Bigras has been the CEO of GDI Integrated Facility Services Inc. (TSE:GDI) since 2004. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for GDI Integrated Facility Services
How Does Claude Bigras's Compensation Compare With Similar Sized Companies?
Our data indicates that GDI Integrated Facility Services Inc. is worth CA$755m, and total annual CEO compensation was reported as CA$2.2m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CA$566k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from CA$265m to CA$1.1b, we found the median CEO total compensation was CA$1.3m.
It would therefore appear that GDI Integrated Facility Services Inc. pays Claude Bigras more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at GDI Integrated Facility Services has changed from year to year.
Is GDI Integrated Facility Services Inc. Growing?
GDI Integrated Facility Services Inc. has reduced its earnings per share by an average of 25% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 19%.
Unfortunately, earnings per share have trended lower over the last three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has GDI Integrated Facility Services Inc. Been A Good Investment?
I think that the total shareholder return of 117%, over three years, would leave most GDI Integrated Facility Services Inc. shareholders smiling. 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.
In Summary...
We compared the total CEO remuneration paid by GDI Integrated Facility Services Inc., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
We think many shareholders would be underwhelmed with the business growth over the last three years. On the other hand, returns have been good, so the company is doing something right. So on this analysis we'd stop short of criticizing the level of CEO compensation. Shareholders may want to check for free if GDI Integrated Facility Services insiders are buying or selling shares.
Important note: GDI Integrated Facility Services may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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