Yahoo Finance Should Shareholders Reconsider Goodfood Market Corp.'s (TSE:FOOD) CEO Compensation Package?
Key Insights
Goodfood Market will host its Annual General Meeting on 16th of January
Total pay for CEO Jonathan Ferrari includes CA$450.0k salary
The total compensation is 91% higher than the average for the industry
Goodfood Market's three-year loss to shareholders was 98% while its EPS was down 53% over the past three years
Goodfood Market Corp. (TSE:FOOD) has not performed well recently and CEO Jonathan Ferrari will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 16th of January. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.
Check out our latest analysis for Goodfood Market
How Does Total Compensation For Jonathan Ferrari Compare With Other Companies In The Industry?
At the time of writing, our data shows that Goodfood Market Corp. has a market capitalization of CA$22m, and reported total annual CEO compensation of CA$858k for the year to September 2023. That's a notable decrease of 38% on last year. In particular, the salary of CA$450.0k, makes up a fairly large portion of the total compensation being paid to the CEO.
For comparison, other companies in the Canadian Consumer Retailing industry with market capitalizations below CA$268m, reported a median total CEO compensation of CA$449k. Accordingly, our analysis reveals that Goodfood Market Corp. pays Jonathan Ferrari north of the industry median. What's more, Jonathan Ferrari holds CA$2.6m 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$450k | CA$450k | 52% |
Other | CA$408k | CA$937k | 48% |
Total Compensation | CA$858k | CA$1.4m | 100% |
On an industry level, roughly 27% of total compensation represents salary and 73% is other remuneration. Goodfood Market pays out 52% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Goodfood Market Corp.'s Growth Numbers
Over the last three years, Goodfood Market Corp. has shrunk its earnings per share by 53% per year. In the last year, its revenue is down 37%.
The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Goodfood Market Corp. Been A Good Investment?
Few Goodfood Market Corp. shareholders would feel satisfied with the return of -98% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 4 warning signs (and 2 which are a bit unpleasant) in Goodfood Market we think you should know about.
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.
