Yahoo Finance Most Shareholders Will Probably Agree With Power Corporation of Canada's (TSE:POW) CEO Compensation
Key Insights
Power Corporation of Canada to hold its Annual General Meeting on 9th of May
Salary of CA$4.50m is part of CEO Jeff Orr's total remuneration
The total compensation is similar to the average for the industry
Over the past three years, Power Corporation of Canada's EPS grew by 5.1% and over the past three years, the total shareholder return was 21%
Performance at Power Corporation of Canada (TSE:POW) has been reasonably good and CEO Jeff Orr has done a decent job of steering the company in the right direction. 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 9th of May. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
See our latest analysis for Power Corporation of Canada
How Does Total Compensation For Jeff Orr Compare With Other Companies In The Industry?
At the time of writing, our data shows that Power Corporation of Canada has a market capitalization of CA$24b, and reported total annual CEO compensation of CA$14m for the year to December 2023. That's just a smallish increase of 5.7% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$4.5m.
In comparison with other companies in the Canadian Insurance industry with market capitalizations over CA$11b, the reported median total CEO compensation was CA$13m. This suggests that Power Corporation of Canada remunerates its CEO largely in line with the industry average. What's more, Jeff Orr holds CA$25m 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$4.5m | CA$4.5m | 32% |
Other | CA$9.6m | CA$8.8m | 68% |
Total Compensation | CA$14m | CA$13m | 100% |
On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. According to our research, Power Corporation of Canada has allocated a higher percentage of pay to salary in comparison to the wider industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Power Corporation of Canada's Growth
Over the past three years, Power Corporation of Canada has seen its earnings per share (EPS) grow by 5.1% per year. It achieved revenue growth of 3.2% over the last year.
We'd prefer higher revenue growth, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Power Corporation of Canada Been A Good Investment?
Power Corporation of Canada has served shareholders reasonably well, with a total return of 21% 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.
To Conclude...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.
So you may want to check if insiders are buying Power Corporation of Canada shares with their own money (free access).
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
