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Should You Worry About good natured Products Inc.'s (CVE:GDNP) CEO Pay Cheque?

Simply Wall St

Paul Antoniadis has been the CEO of good natured Products Inc. (CVE:GDNP) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for good natured Products

How Does Paul Antoniadis's Compensation Compare With Similar Sized Companies?

Our data indicates that good natured Products Inc. is worth CA$15m, and total annual CEO compensation was reported as CA$224k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$188k. We examined a group of similar sized companies, with market capitalizations of below CA$264m. The median CEO total compensation in that group is CA$160k.

It would therefore appear that good natured Products Inc. pays Paul Antoniadis 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

The graphic below shows how CEO compensation at good natured Products has changed from year to year.

TSXV:GDNP CEO Compensation, September 30th 2019

Is good natured Products Inc. Growing?

Over the last three years good natured Products Inc. has grown its earnings per share (EPS) by an average of 27% per year (using a line of best fit). Its revenue is up 81% over last year.

This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has good natured Products Inc. Been A Good Investment?

Given the total loss of 3.2% over three years, many shareholders in good natured Products Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We examined the amount good natured Products Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Shareholders may want to check for free if good natured Products insiders are buying or selling shares.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at 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. Thank you for reading.