In 2002 Marcel Bourassa was appointed CEO of Savaria Corporation (TSE:SIS). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Marcel Bourassa's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Savaria Corporation has a market cap of CA$581m, and is paying total annual CEO compensation of CA$500k. (This number is for the twelve months until December 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth CA$500k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$263m to CA$1.1b. The median total CEO compensation was CA$1.4m.
Most shareholders would consider it a positive that Marcel Bourassa takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at Savaria, below.
Is Savaria Corporation Growing?
On average over the last three years, Savaria Corporation has grown earnings per share (EPS) by 9.1% each year (using a line of best fit). In the last year, its revenue is up 49%.
It's hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. I wouldn't say this is necessarily top notch growth, but it is certainly promising. Shareholders might be interested in this free visualization of analyst forecasts.
Has Savaria Corporation Been A Good Investment?
Savaria Corporation has served shareholders reasonably well, with a total return of 24% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
It appears that Savaria Corporation remunerates its CEO below most similar sized companies.
It's well worth noting that while Marcel Bourassa is paid less than most company leaders (at companies of similar size), share price performance has been somewhat uninspiring. But on this analysis I see no issue with the CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Savaria (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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