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What Can We Conclude About Clairvest Group's (TSE:CVG) CEO Pay?

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Simply Wall St
·3 min read
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This article will reflect on the compensation paid to Ken Rotman who has served as CEO of Clairvest Group Inc. (TSE:CVG) since 2018. This analysis will also assess whether Clairvest Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Clairvest Group

How Does Total Compensation For Ken Rotman Compare With Other Companies In The Industry?

At the time of writing, our data shows that Clairvest Group Inc. has a market capitalization of CA$845m, and reported total annual CEO compensation of CA$3.7m for the year to March 2020. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$330k.

For comparison, other companies in the same industry with market capitalizations ranging between CA$511m and CA$2.0b had a median total CEO compensation of CA$3.5m. So it looks like Clairvest Group compensates Ken Rotman in line with the median for the industry. What's more, Ken Rotman holds CA$279m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2020

2019

Proportion (2020)

Salary

CA$330k

CA$327k

9%

Other

CA$3.4m

CA$3.3m

91%

Total Compensation

CA$3.7m

CA$3.6m

100%

On an industry level, roughly 75% of total compensation represents salary and 25% is other remuneration. It's interesting to note that Clairvest Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ceo-compensation
ceo-compensation

Clairvest Group Inc.'s Growth

Clairvest Group Inc.'s earnings per share (EPS) grew 3.9% per year over the last three years. Its revenue is down 7.8% over the previous year.

We would prefer it if there was revenue growth, but the modest improvement in EPS is good. 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. 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 Clairvest Group Inc. Been A Good Investment?

Most shareholders would probably be pleased with Clairvest Group Inc. for providing a total return of 49% over three years. 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...

As we touched on above, Clairvest Group 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. However, the company's EPS growth numbers over the last three years is not that impressive. At the same time, shareholder returns have remained strong over the same period. There is room for improved company performance, but we don't see the CEO compensation as a big issue here.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Clairvest Group.

Important note: Clairvest Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.