Yahoo Finance Should You Worry About Sherritt International Corporation's (TSE:S) CEO Salary Level?
David Pathe became the CEO of Sherritt International Corporation (TSE:S) in 2012. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Sherritt International
How Does David Pathe's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Sherritt International Corporation has a market cap of CA$73m, and reported total annual CEO compensation of CA$3.5m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$825k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We looked at a group of companies with market capitalizations under CA$264m, and the median CEO total compensation was CA$225k.
It would therefore appear that Sherritt International Corporation pays David Pathe 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 get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Sherritt International, below.
Is Sherritt International Corporation Growing?
On average over the last three years, Sherritt International Corporation has grown earnings per share (EPS) by 82% each year (using a line of best fit). In the last year, its revenue is down 16%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. You might want to check this free visual report on analyst forecasts for future earnings.
Has Sherritt International Corporation Been A Good Investment?
Given the total loss of 88% over three years, many shareholders in Sherritt International Corporation 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 compared the total CEO remuneration paid by Sherritt International Corporation, 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.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Shareholders may want to check for free if Sherritt International insiders are buying or selling shares.
Important note: Sherritt International 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.
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. Thank you for reading.
