Yahoo Finance We Think Some Shareholders May Hesitate To Increase Lifeist Wellness Inc.'s (CVE:LFST) CEO Compensation
Shareholders of Lifeist Wellness Inc. (CVE:LFST) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 30 November 2021. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
See our latest analysis for Lifeist Wellness
How Does Total Compensation For Meni Morim Compare With Other Companies In The Industry?
At the time of writing, our data shows that Lifeist Wellness Inc. has a market capitalization of CA$34m, and reported total annual CEO compensation of CA$502k for the year to November 2020. Notably, that's a decrease of 13% over the year before. Notably, the salary which is CA$379.9k, represents most of the total compensation being paid.
For comparison, other companies in the industry with market capitalizations below CA$254m, reported a median total CEO compensation of CA$229k. This suggests that Meni Morim is paid more than the median for the industry. What's more, Meni Morim holds CA$213k worth of shares in the company in their own name.
Component | 2020 | 2019 | Proportion (2020) |
Salary | CA$380k | CA$579k | 76% |
Other | CA$122k | - | 24% |
Total Compensation | CA$502k | CA$579k | 100% |
On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. Lifeist Wellness is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Lifeist Wellness Inc.'s Growth Numbers
Lifeist Wellness Inc.'s earnings per share (EPS) grew 14% per year over the last three years. It achieved revenue growth of 8.7% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Lifeist Wellness Inc. Been A Good Investment?
With a total shareholder return of -94% over three years, Lifeist Wellness Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 5 warning signs for Lifeist Wellness (of which 2 are a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from Lifeist Wellness, 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.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
