Yahoo Finance Vertex Resource Group Ltd.'s (CVE:VTX) CEO Compensation Looks Acceptable To Us And Here's Why
Key Insights
Vertex Resource Group to hold its Annual General Meeting on 15th of May
Total pay for CEO Terry Stephenson includes CA$250.0k salary
The overall pay is comparable to the industry average
Over the past three years, Vertex Resource Group's EPS grew by 82% and over the past three years, the total shareholder return was 14%
CEO Terry Stephenson has done a decent job of delivering relatively good performance at Vertex Resource Group Ltd. (CVE:VTX) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 15th of May. We present our case of why we think CEO compensation looks fair.
Check out our latest analysis for Vertex Resource Group
How Does Total Compensation For Terry Stephenson Compare With Other Companies In The Industry?
Our data indicates that Vertex Resource Group Ltd. has a market capitalization of CA$43m, and total annual CEO compensation was reported as CA$400k for the year to December 2023. Notably, that's an increase of 13% over the year before. Notably, the salary which is CA$250.0k, represents most of the total compensation being paid.
For comparison, other companies in the Canadian Commercial Services industry with market capitalizations below CA$275m, reported a median total CEO compensation of CA$476k. So it looks like Vertex Resource Group compensates Terry Stephenson in line with the median for the industry. Moreover, Terry Stephenson also holds CA$6.1m worth of Vertex Resource Group 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$250k | CA$250k | 63% |
Other | CA$150k | CA$105k | 38% |
Total Compensation | CA$400k | CA$355k | 100% |
On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. Vertex Resource Group is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Vertex Resource Group Ltd.'s Growth
Vertex Resource Group Ltd. has seen its earnings per share (EPS) increase by 82% a year over the past three years. In the last year, its revenue is up 13%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Vertex Resource Group Ltd. Been A Good Investment?
Vertex Resource Group Ltd. has served shareholders reasonably well, with a total return of 14% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.
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 2 warning signs for Vertex Resource Group (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.
Important note: Vertex Resource Group 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.
