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Mike Walkinshaw has been the CEO of TIMIA Capital Corp. (CVE:TCA) since 2015, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Mike Walkinshaw Compare With Other Companies In The Industry?
According to our data, TIMIA Capital Corp. has a market capitalization of CA$7.9m, and paid its CEO total annual compensation worth CA$190k over the year to November 2019. We note that's a small decrease of 5.2% on last year. We note that the salary portion, which stands at CA$147.5k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the industry with market capitalizations below CA$262m, reported a median total CEO compensation of CA$313k. Accordingly, TIMIA Capital pays its CEO under the industry median. Furthermore, Mike Walkinshaw directly owns CA$669k worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, roughly 47% of total compensation represents salary and 53% is other remuneration. According to our research, TIMIA Capital has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
TIMIA Capital Corp.'s Growth
TIMIA Capital Corp. has reduced its earnings per share by 66% a year over the last three years. It achieved revenue growth of 64% over the last year.
Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has TIMIA Capital Corp. Been A Good Investment?
Boasting a total shareholder return of 58% over three years, TIMIA Capital Corp. 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.
As previously discussed, Mike is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. And as we saw, revenue growth and shareholder returns have been rising But it's noteworthy that EPS growth is in the red during the same time frame. Negative EPS growth notwithstanding, we can conclude that on this analysis the CEO compensation seems pretty sound.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for TIMIA Capital (of which 2 are concerning!) that you should know about in order to have a holistic understanding of the stock.
Important note: TIMIA Capital 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.
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