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How Much is Quebecor's (TSE:QBR.A) CEO Getting Paid?

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Simply Wall St
·3 min read
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This article will reflect on the compensation paid to Pierre Péladeau who has served as CEO of Quebecor Inc. (TSE:QBR.A) since 2017. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Quebecor

Comparing Quebecor Inc.'s CEO Compensation With the industry

According to our data, Quebecor Inc. has a market capitalization of CA$8.1b, and paid its CEO total annual compensation worth CA$2.7m over the year to December 2019. That's just a smallish increase of 3.2% on last year. In particular, the salary of CA$1.34m, 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 ranging from CA$5.1b to CA$15b, the reported median CEO total compensation was CA$15m. In other words, Quebecor pays its CEO lower than the industry median. Moreover, Pierre Péladeau also holds CA$68m worth of Quebecor stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component

2019

2018

Proportion (2019)

Salary

CA$1.3m

CA$1.3m

50%

Other

CA$1.3m

CA$1.3m

50%

Total Compensation

CA$2.7m

CA$2.6m

100%

Speaking on an industry level, salary and non-salary portions, both make up 50% each of the total remuneration. Quebecor is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
ceo-compensation

Quebecor Inc.'s Growth

Quebecor Inc.'s earnings per share (EPS) grew 7.5% per year over the last three years. Its revenue is up 1.5% over the last year.

We're not particularly impressed by the revenue growth, but we're happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Quebecor Inc. Been A Good Investment?

We think that the total shareholder return of 41%, over three years, would leave most Quebecor Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

As we noted earlier, Quebecor pays its CEO lower than the norm for similar-sized companies belonging to the same industry. However, shareholder returns are rock solid over the past three years, and that’s undoubtedly a good sign. Considering this fine result for investors, we believe CEO compensation to be apt.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for Quebecor that investors should be aware of in a dynamic business environment.

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@simplywallst.com.