Yahoo Finance Increases to Goodfellow Inc.'s (TSE:GDL) CEO Compensation Might Cool off for now
Key Insights
Goodfellow will host its Annual General Meeting on 16th of May
Total pay for CEO Patrick Goodfellow includes CA$365.8k salary
Total compensation is 43% above industry average
Goodfellow's total shareholder return over the past three years was 60% while its EPS was down 8.8% over the past three years
Despite strong share price growth of 60% for Goodfellow Inc. (TSE:GDL) over the last few years, earnings growth has been disappointing, which suggests something is amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 16th of May. 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. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.
See our latest analysis for Goodfellow
How Does Total Compensation For Patrick Goodfellow Compare With Other Companies In The Industry?
Our data indicates that Goodfellow Inc. has a market capitalization of CA$123m, and total annual CEO compensation was reported as CA$949k for the year to November 2023. That's a notable increase of 39% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$366k.
For comparison, other companies in the Canadian Trade Distributors industry with market capitalizations below CA$274m, reported a median total CEO compensation of CA$666k. This suggests that Patrick Goodfellow is paid more than the median for the industry. What's more, Patrick Goodfellow holds CA$1.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$366k | CA$350k | 39% |
Other | CA$583k | CA$331k | 61% |
Total Compensation | CA$949k | CA$681k | 100% |
On an industry level, roughly 29% of total compensation represents salary and 71% is other remuneration. Goodfellow pays out 39% of remuneration in the form of a salary, significantly higher than the industry average. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Goodfellow Inc.'s Growth Numbers
Over the last three years, Goodfellow Inc. has shrunk its earnings per share by 8.8% per year. It saw its revenue drop 16% over the last year.
Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Goodfellow Inc. Been A Good Investment?
Most shareholders would probably be pleased with Goodfellow Inc. for providing a total return of 60% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean returns may be hard to keep up. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Goodfellow that investors should think about before committing capital to this stock.
Switching gears from Goodfellow, 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.
