In 2009 Joey St-Aubin was appointed CEO of Canlan Ice Sports Corp. (TSE:ICE). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Joey St-Aubin's Compensation Compare With Similar Sized Companies?
According to our data, Canlan Ice Sports Corp. has a market capitalization of CA$70m, and paid its CEO total annual compensation worth CA$377k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CA$306k. We examined a group of similar sized companies, with market capitalizations of below CA$261m. The median CEO total compensation in that group is CA$211k.
It would therefore appear that Canlan Ice Sports Corp. pays Joey St-Aubin more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Canlan Ice Sports has changed from year to year.
Is Canlan Ice Sports Corp. Growing?
Canlan Ice Sports Corp. has increased its earnings per share (EPS) by an average of 43% a year, over the last three years (using a line of best fit). Its revenue is up 2.4% over last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Canlan Ice Sports Corp. Been A Good Investment?
I think that the total shareholder return of 59%, over three years, would leave most Canlan Ice Sports Corp. shareholders smiling. 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.
We compared total CEO remuneration at Canlan Ice Sports Corp. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying Canlan Ice Sports shares with their own money (free access).
If you want to buy a stock that is better than Canlan Ice Sports, this free list of high return, low debt companies is a great place to look.
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