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Barry Fishman has been the CEO of VIVO Cannabis Inc. (TSE:VIVO) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Barry Fishman Compare With Other Companies In The Industry?
According to our data, VIVO Cannabis Inc. has a market capitalization of CA$41m, and paid its CEO total annual compensation worth CA$427k over the year to December 2019. That's a fairly small increase of 3.5% over the previous year. Notably, the salary which is CA$294.5k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under CA$265m, the reported median total CEO compensation was CA$238k. This suggests that Barry Fishman is paid more than the median for the industry. What's more, Barry Fishman holds CA$193k worth of shares in the company in their own name.
Talking in terms of the industry, salary represented approximately 81% of total compensation out of all the companies we analyzed, while other remuneration made up 19% of the pie. VIVO Cannabis pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at VIVO Cannabis Inc.'s Growth Numbers
VIVO Cannabis Inc.'s earnings per share (EPS) grew 34% per year over the last three years. It achieved revenue growth of 65% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 VIVO Cannabis Inc. Been A Good Investment?
Given the total shareholder loss of 90% over three years, many shareholders in VIVO Cannabis Inc. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
As previously discussed, Barry is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But the company has impressed with its EPS growth, but shareholder returns — over the same period — have been disappointing. Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 5 warning signs for VIVO Cannabis (of which 2 are a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.
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.
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