Here's Why Shareholders Should Examine Andrew Peller Limited's (TSE:ADW.A) CEO Compensation Package More Closely
Key Insights
Andrew Peller's Annual General Meeting to take place on 28th of September
Total pay for CEO John Peller includes CA$706.5k salary
The total compensation is 185% higher than the average for the industry
Over the past three years, Andrew Peller's EPS fell by 84% and over the past three years, the total loss to shareholders 54%
Shareholders will probably not be too impressed with the underwhelming results at Andrew Peller Limited (TSE:ADW.A) recently. At the upcoming AGM on 28th of September, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.
View our latest analysis for Andrew Peller
Comparing Andrew Peller Limited's CEO Compensation With The Industry
At the time of writing, our data shows that Andrew Peller Limited has a market capitalization of CA$185m, and reported total annual CEO compensation of CA$1.6m for the year to March 2023. We note that's an increase of 15% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$706k.
For comparison, other companies in the Canadian Beverage industry with market capitalizations below CA$270m, reported a median total CEO compensation of CA$545k. This suggests that John Peller is paid more than the median for the industry. Moreover, John Peller also holds CA$22m worth of Andrew Peller stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$706k | CA$696k | 45% |
Other | CA$847k | CA$653k | 55% |
Total Compensation | CA$1.6m | CA$1.3m | 100% |
On an industry level, around 43% of total compensation represents salary and 57% is other remuneration. Andrew Peller is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Andrew Peller Limited's Growth Numbers
Over the last three years, Andrew Peller Limited has shrunk its earnings per share by 84% per year. In the last year, its revenue is up 1.5%.
The decline in EPS is a bit concerning. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Andrew Peller Limited Been A Good Investment?
With a total shareholder return of -54% over three years, Andrew Peller Limited shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for Andrew Peller that investors should look into moving forward.
Switching gears from Andrew Peller, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
