Yahoo Finance Shareholders Will Probably Be Cautious Of Increasing GDI Integrated Facility Services Inc.'s (TSE:GDI) CEO Compensation At The Moment
Key Insights
GDI Integrated Facility Services' Annual General Meeting to take place on 10th of May
Salary of CA$957.6k is part of CEO Claude Bigras's total remuneration
The total compensation is 31% less than the average for the industry
GDI Integrated Facility Services' three-year loss to shareholders was 33% while its EPS was down 28% over the past three years
The underwhelming performance at GDI Integrated Facility Services Inc. (TSE:GDI) recently has probably not pleased shareholders. The next AGM coming up on 10th of May will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. We think most shareholders will probably pass the CEO compensation, based on what we gathered.
View our latest analysis for GDI Integrated Facility Services
Comparing GDI Integrated Facility Services Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that GDI Integrated Facility Services Inc. has a market capitalization of CA$841m, and reported total annual CEO compensation of CA$4.0m for the year to December 2023. That's a notable decrease of 9.5% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$958k.
For comparison, other companies in the Canadian Commercial Services industry with market capitalizations ranging between CA$547m and CA$2.2b had a median total CEO compensation of CA$5.8m. In other words, GDI Integrated Facility Services pays its CEO lower than the industry median. Moreover, Claude Bigras also holds CA$96m worth of GDI Integrated Facility Services stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$958k | CA$948k | 24% |
Other | CA$3.0m | CA$3.5m | 76% |
Total Compensation | CA$4.0m | CA$4.4m | 100% |
On an industry level, around 40% of total compensation represents salary and 60% is other remuneration. GDI Integrated Facility Services sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at GDI Integrated Facility Services Inc.'s Growth Numbers
Over the last three years, GDI Integrated Facility Services Inc. has shrunk its earnings per share by 28% per year. In the last year, its revenue is up 12%.
Few shareholders would be pleased to read that EPS have declined. 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 EPS has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has GDI Integrated Facility Services Inc. Been A Good Investment?
The return of -33% over three years would not have pleased GDI Integrated Facility Services Inc. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for GDI Integrated Facility Services (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.
Important note: GDI Integrated Facility Services is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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.
