Yahoo Finance It's Unlikely That Polaris Renewable Energy Inc.'s (TSE:PIF) CEO Will See A Huge Pay Rise This Year
Key Insights
Polaris Renewable Energy's Annual General Meeting to take place on 20th of June
CEO Marc Murnaghan's total compensation includes salary of US$397.0k
Total compensation is 162% above industry average
Over the past three years, Polaris Renewable Energy's EPS fell by 28% and over the past three years, the total loss to shareholders 18%
In the past three years, the share price of Polaris Renewable Energy Inc. (TSE:PIF) has struggled to grow and now shareholders are sitting on a loss. Per share earnings growth is also lacking, despite revenue growth. The AGM coming up on 20th of June will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.
Check out our latest analysis for Polaris Renewable Energy
Comparing Polaris Renewable Energy Inc.'s CEO Compensation With The Industry
According to our data, Polaris Renewable Energy Inc. has a market capitalization of CA$277m, and paid its CEO total annual compensation worth US$526k over the year to December 2023. That's a notable decrease of 20% on last year. In particular, the salary of US$397.0k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the Canadian Renewable Energy industry with market capitalizations ranging between CA$137m and CA$549m had a median total CEO compensation of US$201k. Accordingly, our analysis reveals that Polaris Renewable Energy Inc. pays Marc Murnaghan north of the industry median. Furthermore, Marc Murnaghan directly owns CA$6.4m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$397k | US$404k | 75% |
Other | US$129k | US$253k | 25% |
Total Compensation | US$526k | US$656k | 100% |
On an industry level, roughly 30% of total compensation represents salary and 70% is other remuneration. Polaris Renewable Energy is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Polaris Renewable Energy Inc.'s Growth Numbers
Over the last three years, Polaris Renewable Energy Inc. has shrunk its earnings per share by 28% per year. It achieved revenue growth of 19% over the last year.
The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Polaris Renewable Energy Inc. Been A Good Investment?
Given the total shareholder loss of 18% over three years, many shareholders in Polaris Renewable Energy Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. Shareholders will get the chance at the upcoming AGM to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Polaris Renewable Energy (2 are potentially serious!) that you should be aware of before investing here.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
