In 2010 Amar Doman was appointed CEO of CanWel Building Materials Group Ltd (TSE:CWX). First, this article will compare CEO compensation with compensation at similar sized companies. 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 Amar Doman’s Compensation Compare With Similar Sized Companies?
Our data indicates that CanWel Building Materials Group Ltd is worth CA$386m, and total annual CEO compensation is CA$1m. That’s below the compensation, last year. When we examined a selection of companies with market caps ranging from CA$131m to CA$525m, we found the median CEO compensation was CA$848k.
So Amar Doman receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at CanWel Building Materials Group, below.
Is CanWel Building Materials Group Ltd Growing?
CanWel Building Materials Group Ltd has increased its earnings per share (EPS) by an average of 2.7% a year, over the last three years In the last year, its revenue is up 23%.
I think the revenue growth is good. And the improvement in earnings per share is modest but respectable. So while we’d stop just short of calling this a top performer, but we think it is well worth watching.
You might want to check this free visual report on analyst forecasts for future earnings.
Has CanWel Building Materials Group Ltd Been A Good Investment?
CanWel Building Materials Group Ltd has served shareholders reasonably well, with a total return of 32% over three years. 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.
Amar Doman is paid around the same as most CEOs of similar size companies.
We see room for improved growth, as well as fairly unremarkable returns over the last three years. While there is room for improvement, we haven’t seen evidence to suggest the pay is too generous. Shareholders may want to check for free if CanWel Building Materials Group Ltd insiders are buying or selling shares.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
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The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.