Yahoo Finance We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Colabor Group Inc.'s (TSE:GCL) CEO For Now
Key Insights
Colabor Group to hold its Annual General Meeting on 16th of May
Total pay for CEO Louis Frenette includes CA$640.8k salary
The total compensation is 86% higher than the average for the industry
Colabor Group's total shareholder return over the past three years was 19% while its EPS was down 1.8% over the past three years
The share price of Colabor Group Inc. (TSE:GCL) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. The upcoming AGM on 16th of May may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.
View our latest analysis for Colabor Group
Comparing Colabor Group Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that Colabor Group Inc. has a market capitalization of CA$113m, and reported total annual CEO compensation of CA$1.8m for the year to December 2023. Notably, that's an increase of 84% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$641k.
In comparison with other companies in the Canadian Consumer Retailing industry with market capitalizations under CA$274m, the reported median total CEO compensation was CA$963k. Hence, we can conclude that Louis Frenette is remunerated higher than the industry median. Furthermore, Louis Frenette directly owns CA$1.2m worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$641k | CA$627k | 36% |
Other | CA$1.2m | CA$349k | 64% |
Total Compensation | CA$1.8m | CA$976k | 100% |
Talking in terms of the industry, salary represented approximately 19% of total compensation out of all the companies we analyzed, while other remuneration made up 81% of the pie. According to our research, Colabor Group has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Colabor Group Inc.'s Growth Numbers
Colabor Group Inc. has reduced its earnings per share by 1.8% a year over the last three years. It achieved revenue growth of 7.6% over the last year.
The lack of EPS growth is certainly uninspiring. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Colabor Group Inc. Been A Good Investment?
Colabor Group Inc. has generated a total shareholder return of 19% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
While it's true that shareholders have owned decent returns, it's hard to overlook the lack of earnings growth and this makes us question whether these returns will continue. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for Colabor Group (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from Colabor Group, 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.
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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.
