Yahoo Finance Here's Why Shareholders May Consider Paying goeasy Ltd.'s (TSE:GSY) CEO A Little More
Key Insights
goeasy to hold its Annual General Meeting on 8th of May
Total pay for CEO Jason Mullins includes CA$646.0k salary
The total compensation is 60% less than the average for the industry
Over the past three years, goeasy's EPS grew by 17% and over the past three years, the total shareholder return was 28%
Shareholders will be pleased by the robust performance of goeasy Ltd. (TSE:GSY) recently and this will be kept in mind in the upcoming AGM on 8th of May. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.
See our latest analysis for goeasy
Comparing goeasy Ltd.'s CEO Compensation With The Industry
At the time of writing, our data shows that goeasy Ltd. has a market capitalization of CA$2.9b, and reported total annual CEO compensation of CA$3.9m for the year to December 2023. That's a notable increase of 8.8% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$646k.
On examining similar-sized companies in the Canada Consumer Finance industry with market capitalizations between CA$1.4b and CA$4.4b, we discovered that the median CEO total compensation of that group was CA$9.8m. In other words, goeasy pays its CEO lower than the industry median. Furthermore, Jason Mullins directly owns CA$18m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$646k | CA$600k | 17% |
Other | CA$3.2m | CA$3.0m | 83% |
Total Compensation | CA$3.9m | CA$3.6m | 100% |
Talking in terms of the industry, salary represented approximately 48% of total compensation out of all the companies we analyzed, while other remuneration made up 52% of the pie. goeasy sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
goeasy Ltd.'s Growth
goeasy Ltd. has seen its earnings per share (EPS) increase by 17% a year over the past three years. In the last year, its revenue is up 17%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has goeasy Ltd. Been A Good Investment?
goeasy Ltd. has served shareholders reasonably well, with a total return of 28% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
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 4 warning signs for goeasy (of which 2 are concerning!) that you should know about in order to have a holistic understanding of the stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.
