Yahoo Finance Should You Worry About StorageVault Canada Inc.'s (CVE:SVI) CEO Pay?
Steven Scott has been the CEO of StorageVault Canada Inc. (CVE:SVI) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for StorageVault Canada
How Does Steven Scott's Compensation Compare With Similar Sized Companies?
According to our data, StorageVault Canada Inc. has a market capitalization of CA$1.2b, and paid its CEO total annual compensation worth CA$1.2m over the year to December 2019. Notably, that's an increase of 47% over the year before. While we always look at total compensation first, we note that the salary component is less, at CA$250k. 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 from CA$555m to CA$2.2b, and the median CEO total compensation was CA$2.4m.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of StorageVault Canada. Speaking on an industry level, we can see that nearly 54% of total compensation represents salary, while the remainder of 46% is other remuneration. Readers will want to know that StorageVault Canada pays a modest slice of remuneration through salary, as compared to the wider sector.
Most shareholders would consider it a positive that Steven Scott takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion. You can see, below, how CEO compensation at StorageVault Canada has changed over time.
Is StorageVault Canada Inc. Growing?
Earnings per share at StorageVault Canada Inc. are much the same as they were three years ago, albeit with a positive trend. Its revenue is up 42% over last year.
It's hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn't shabby. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Shareholders might be interested in this free visualization of analyst forecasts.
Has StorageVault Canada Inc. Been A Good Investment?
I think that the total shareholder return of 54%, over three years, would leave most StorageVault Canada Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
StorageVault Canada Inc. is currently paying its CEO below what is normal for companies of its size.
Steven Scott receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. We would like to see EPS growth, but in our view it seems the CEO is modestly remunerated. On another note, StorageVault Canada has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.
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. 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. Thank you for reading.
