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What Did Calian Group's (TSE:CGY) CEO Take Home Last Year?

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Simply Wall St
·4 min read
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Kevin Ford has been the CEO of Calian Group Ltd. (TSE:CGY) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Calian Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Calian Group

Comparing Calian Group Ltd.'s CEO Compensation With the industry

According to our data, Calian Group Ltd. has a market capitalization of CA$602m, and paid its CEO total annual compensation worth CA$1.4m over the year to September 2020. Notably, that's an increase of 49% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$426k.

For comparison, other companies in the same industry with market capitalizations ranging between CA$256m and CA$1.0b had a median total CEO compensation of CA$1.6m. From this we gather that Kevin Ford is paid around the median for CEOs in the industry. Furthermore, Kevin Ford directly owns CA$1.5m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2020

2019

Proportion (2020)

Salary

CA$426k

CA$418k

31%

Other

CA$950k

CA$509k

69%

Total Compensation

CA$1.4m

CA$927k

100%

On an industry level, around 61% of total compensation represents salary and 39% is other remuneration. Calian Group sets aside a smaller share of compensation for salary, in comparison to the overall 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

Calian Group Ltd.'s Growth

Calian Group Ltd.'s earnings per share (EPS) grew 3.5% per year over the last three years. It achieved revenue growth of 26% over the last year.

It's hard to interpret the strong revenue growth as anything other than a positive. And in that context, the modest EPS improvement certainly isn't shabby. So while we'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! 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 Calian Group Ltd. Been A Good Investment?

Boasting a total shareholder return of 116% over three years, Calian Group Ltd. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

As previously discussed, Kevin is compensated close to the median for companies of its size, and which belong to the same industry. But the business isn't reporting great numbers in terms of EPS growth. At the same time, shareholder returns have remained strong over the same period. We would like to see EPS growth from the business, although we wouldn't say the CEO compensation is high.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Calian Group you should be aware of, and 1 of them is potentially serious.

Important note: Calian 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.