Yahoo Finance Genesis Land Development Corp.'s (TSE:GDC) CEO Compensation Is Looking A Bit Stretched At The Moment
Key Insights
Genesis Land Development will host its Annual General Meeting on 14th of May
CEO Iain Stewart's total compensation includes salary of CA$341.8k
Total compensation is 301% above industry average
Genesis Land Development's total shareholder return over the past three years was 42% while its EPS grew by 285% over the past three years
CEO Iain Stewart has done a decent job of delivering relatively good performance at Genesis Land Development Corp. (TSE:GDC) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 14th of May. However, some shareholders will still be cautious of paying the CEO excessively.
See our latest analysis for Genesis Land Development
Comparing Genesis Land Development Corp.'s CEO Compensation With The Industry
According to our data, Genesis Land Development Corp. has a market capitalization of CA$187m, and paid its CEO total annual compensation worth CA$930k over the year to December 2023. Notably, that's an increase of 8.2% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$342k.
On comparing similar-sized companies in the Canadian Real Estate industry with market capitalizations below CA$275m, we found that the median total CEO compensation was CA$232k. Hence, we can conclude that Iain Stewart is remunerated higher than the industry median. What's more, Iain Stewart holds CA$576k worth of shares in the company in their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$342k | CA$321k | 37% |
Other | CA$589k | CA$539k | 63% |
Total Compensation | CA$930k | CA$860k | 100% |
Talking in terms of the industry, salary represented approximately 59% of total compensation out of all the companies we analyzed, while other remuneration made up 41% of the pie. Genesis Land Development pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
Genesis Land Development Corp.'s Growth
Genesis Land Development Corp. has seen its earnings per share (EPS) increase by 285% a year over the past three years. It achieved revenue growth of 45% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Genesis Land Development Corp. Been A Good Investment?
Most shareholders would probably be pleased with Genesis Land Development Corp. for providing a total return of 42% over three years. 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.
To Conclude...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Genesis Land Development that you should be aware of before investing.
Switching gears from Genesis Land Development, 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.
