What We Learned About Devonian Health Group's (CVE:GSD) CEO Compensation
Andre Boulet became the CEO of Devonian Health Group Inc. (CVE:GSD) in 2015, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for Devonian Health Group
How Does Total Compensation For Andre Boulet Compare With Other Companies In The Industry?
According to our data, Devonian Health Group Inc. has a market capitalization of CA$22m, and paid its CEO total annual compensation worth CA$216k over the year to July 2020. This means that the compensation hasn't changed much from last year. In particular, the salary of CA$200.0k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the industry with market capitalizations under CA$253m, the reported median total CEO compensation was CA$219k. This suggests that Devonian Health Group remunerates its CEO largely in line with the industry average.
Component | 2020 | 2019 | Proportion (2020) |
Salary | CA$200k | CA$200k | 93% |
Other | CA$16k | CA$12k | 7% |
Total Compensation | CA$216k | CA$212k | 100% |
Talking in terms of the industry, salary represented approximately 82% of total compensation out of all the companies we analyzed, while other remuneration made up 18% of the pie. It's interesting to note that Devonian Health Group pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Devonian Health Group Inc.'s Growth
Over the past three years, Devonian Health Group Inc. has seen its earnings per share (EPS) grow by 22% per year. Its revenue is down 47% over the previous year.
This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Devonian Health Group Inc. Been A Good Investment?
Boasting a total shareholder return of 2,580% over three years, Devonian Health Group 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...
As previously discussed, Andre is compensated close to the median for companies of its size, and which belong to the same industry. The company is growing EPS and total shareholder returns have been pleasing. So one could argue that CEO compensation is quite modest, if you consider company performance! In fact, shareholders might even think the CEO deserves a raise as a reward due to the fantastic returns generated.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 5 warning signs (and 1 which doesn't sit too well with us) in Devonian Health Group we think you should know about.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
