CanWel Building Materials Group Ltd.'s (TSE:CWX) CEO Will Probably Have Their Compensation Approved By Shareholders
It would be hard to discount the role that CEO Amar Doman has played in delivering the impressive results at CanWel Building Materials Group Ltd. (TSE:CWX) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 13 May 2021. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
Check out our latest analysis for CanWel Building Materials Group
Comparing CanWel Building Materials Group Ltd.'s CEO Compensation With the industry
According to our data, CanWel Building Materials Group Ltd. has a market capitalization of CA$767m, and paid its CEO total annual compensation worth CA$1.6m over the year to December 2020. Notably, that's an increase of 72% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$600k.
On comparing similar companies from the same industry with market caps ranging from CA$490m to CA$2.0b, we found that the median CEO total compensation was CA$1.9m. This suggests that CanWel Building Materials Group remunerates its CEO largely in line with the industry average. Moreover, Amar Doman also holds CA$1.3m worth of CanWel Building Materials Group stock directly under their own name.
Component | 2020 | 2019 | Proportion (2020) |
Salary | CA$600k | CA$600k | 39% |
Other | CA$952k | CA$302k | 61% |
Total Compensation | CA$1.6m | CA$902k | 100% |
On an industry level, around 41% of total compensation represents salary and 59% is other remuneration. Our data reveals that CanWel Building Materials Group allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at CanWel Building Materials Group Ltd.'s Growth Numbers
CanWel Building Materials Group Ltd. has seen its earnings per share (EPS) increase by 22% a year over the past three years. In the last year, its revenue is up 21%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 CanWel Building Materials Group Ltd. Been A Good Investment?
Boasting a total shareholder return of 81% over three years, CanWel Building Materials Group Ltd. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. 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.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for CanWel Building Materials Group that you should be aware of before investing.
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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