Yahoo Finance How Much Did Medicure's (CVE:MPH) CEO Pocket Last Year?
Albert Friesen is the CEO of Medicure Inc. (CVE:MPH), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Medicure pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for Medicure
Comparing Medicure Inc.'s CEO Compensation With the industry
Our data indicates that Medicure Inc. has a market capitalization of CA$9.6m, and total annual CEO compensation was reported as CA$347k for the year to December 2019. We note that's an increase of 10.0% above last year. We note that the salary portion, which stands at CA$330.8k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under CA$263m, the reported median total CEO compensation was CA$347k. So it looks like Medicure compensates Albert Friesen in line with the median for the industry. Furthermore, Albert Friesen directly owns CA$2.0m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$331k | CA$315k | 95% |
Other | CA$16k | - | 5% |
Total Compensation | CA$347k | CA$315k | 100% |
Speaking on an industry level, nearly 58% of total compensation represents salary, while the remainder of 42% is other remuneration. Investors will find it interesting that Medicure pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Medicure Inc.'s Growth Numbers
Over the last three years, Medicure Inc. has shrunk its earnings per share by 112% per year. Its revenue is down 44% over the previous year.
The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Medicure Inc. Been A Good Investment?
Given the total shareholder loss of 90% over three years, many shareholders in Medicure Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Albert receives almost all of their compensation through a salary. As we touched on above, Medicure Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.
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 3 warning signs for Medicure (of which 2 don't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.
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.
This article by Simply Wall St is general in nature. 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.
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