Yahoo Finance Empire Company Limited's (TSE:EMP.A) CEO Compensation Looks Acceptable To Us And Here's Why
Key Insights
Empire's Annual General Meeting to take place on 14th of September
Salary of CA$1.30m is part of CEO Mike Medline's total remuneration
The total compensation is 43% less than the average for the industry
Over the past three years, Empire's EPS grew by 8.3% and over the past three years, the total loss to shareholders 4.6%
Performance at Empire Company Limited (TSE:EMP.A) has been rather uninspiring recently and shareholders may be wondering how CEO Mike Medline plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 14th of September. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.
See our latest analysis for Empire
How Does Total Compensation For Mike Medline Compare With Other Companies In The Industry?
According to our data, Empire Company Limited has a market capitalization of CA$8.6b, and paid its CEO total annual compensation worth CA$6.8m over the year to May 2023. We note that's a decrease of 22% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$1.3m.
For comparison, other companies in the Canadian Consumer Retailing industry with market capitalizations ranging between CA$5.5b and CA$16b had a median total CEO compensation of CA$12m. Accordingly, Empire pays its CEO under the industry median. Furthermore, Mike Medline directly owns CA$5.5m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$1.3m | CA$1.3m | 19% |
Other | CA$5.5m | CA$7.4m | 81% |
Total Compensation | CA$6.8m | CA$8.7m | 100% |
On an industry level, around 19% of total compensation represents salary and 81% is other remuneration. Empire is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Empire Company Limited's Growth
Empire Company Limited has seen its earnings per share (EPS) increase by 8.3% a year over the past three years. In the last year, its revenue is up 1.1%.
We would argue that the improvement in revenue is good, but isn't particularly impressive, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Empire Company Limited Been A Good Investment?
Since shareholders would have lost about 4.6% over three years, some Empire Company Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
It may not be surprising to some that the recent weak performance in the share price may be driven in part by rather flat EPS growth. Shareholders will get the chance to question the board on key concerns and revisit their investment thesis with regards to the company.
So you may want to check if insiders are buying Empire shares with their own money (free access).
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
