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How Should Investors React To Aphria Inc’s (TSE:APHA) CEO Pay?

In 2014 Vic Neufeld was appointed CEO of Aphria Inc (TSE:APHA). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Aphria

How Does Vic Neufeld’s Compensation Compare With Similar Sized Companies?

Our data indicates that Aphria Inc is worth CA$3.4b, and total annual CEO compensation is CA$2.8m. We note that’s an increase of 22% above last year. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$2.6b to CA$8.5b. The median total CEO compensation was CA$3.8m.

So Vic Neufeld is paid around the average of 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, below, how CEO compensation at Aphria has changed over time.

TSX:APHA CEO Compensation November 16th 18

Is Aphria Inc Growing?

On average over the last three years, Aphria Inc has grown earnings per share (EPS) by 103% each year. Its revenue is up 99% over last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Aphria Inc Been A Good Investment?

Boasting a total shareholder return of 817% over three years, Aphria Inc has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

Remuneration for Vic Neufeld is close enough to the median pay for a CEO of a similar sized company .

The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Aphria Inc shares (free trial).

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

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 editorial-team@simplywallst.com.