Is Park Lawn Corporation's (TSE:PLC) CEO Paid At A Competitive Rate?
In 2013 Andrew Clark was appointed CEO of Park Lawn Corporation (TSE:PLC). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Park Lawn
How Does Andrew Clark's Compensation Compare With Similar Sized Companies?
Our data indicates that Park Lawn Corporation is worth CA$711m, and total annual CEO compensation is CA$539k. (This is based on the year to December 2017). While we always look at total compensation first, we note that the salary component is less, at CA$333k. We looked at a group of companies with market capitalizations from CA$267m to CA$1.1b, and the median CEO total compensation was CA$1.3m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Park Lawn, below.
Is Park Lawn Corporation Growing?
On average over the last three years, Park Lawn Corporation has shrunk earnings per share by 25% each year (measured with a line of best fit). It achieved revenue growth of 85% over the last year.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. You might want to check this free visual report on analyst forecasts for future earnings.
Has Park Lawn Corporation Been A Good Investment?
I think that the total shareholder return of 127%, over three years, would leave most Park Lawn Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
It looks like Park Lawn Corporation pays its CEO less than similar sized companies.
It's well worth noting that while Andrew Clark is paid below what is normal at companies of similar size, the returns have been very pleasing, over the last three years. So, while it might be nice to have better EPS growth, on our analysis the CEO compensation is quite modest. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Park Lawn.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
