Dan Daviau has been the CEO of Canaccord Genuity Group Inc. (TSE:CF) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Dan Daviau's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Canaccord Genuity Group Inc. has a market cap of CA$532m, and is paying total annual CEO compensation of CA$11m. (This figure is for the year to March 2019). Notably, that's an increase of 80% over the year before. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$850k. We looked at a group of companies with market capitalizations from CA$265m to CA$1.1b, and the median CEO total compensation was CA$1.3m.
Thus we can conclude that Dan Daviau receives more in total compensation than the median of a group of companies in the same market, and of similar size to Canaccord Genuity Group Inc.. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Canaccord Genuity Group has changed over time.
Is Canaccord Genuity Group Inc. Growing?
Canaccord Genuity Group Inc. has increased its earnings per share (EPS) by an average of 132% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 13%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.
Has Canaccord Genuity Group Inc. Been A Good Investment?
Canaccord Genuity Group Inc. has generated a total shareholder return of 27% 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 Canaccord Genuity Group Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within 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. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Canaccord Genuity Group (free visualization of insider trades).
If you want to buy a stock that is better than Canaccord Genuity Group, this free list of high return, low debt companies is a great place to look.
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