In 2012 A. Foote was appointed CEO of Wajax Corporation (TSE:WJX). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does A. Foote's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Wajax Corporation has a market cap of CA$324m, and is paying total annual CEO compensation of CA$3.1m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at CA$786k. We looked at a group of companies with market capitalizations from CA$133m to CA$532m, and the median CEO total compensation was CA$889k.
Thus we can conclude that A. Foote receives more in total compensation than the median of a group of companies in the same market, and of similar size to Wajax Corporation. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Wajax has changed over time.
Is Wajax Corporation Growing?
Over the last three years Wajax Corporation has grown its earnings per share (EPS) by an average of 62% per year (using a line of best fit). It achieved revenue growth of 10% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Shareholders might be interested in this free visualization of analyst forecasts.
Has Wajax Corporation Been A Good Investment?
Wajax Corporation has generated a total shareholder return of 21% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
We compared total CEO remuneration at Wajax Corporation with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. Whatever your view on compensation, you might want to check if insiders are buying or selling Wajax shares (free trial).
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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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.