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A Quick Analysis On Saint Jean Carbon's (CVE:SJL) CEO Compensation

Simply Wall St
·3 mins read

This article will reflect on the compensation paid to Paul Ogilvie who has served as CEO of Saint Jean Carbon Inc. (CVE:SJL) since 2013. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Saint Jean Carbon.

View our latest analysis for Saint Jean Carbon

Comparing Saint Jean Carbon Inc.'s CEO Compensation With the industry

At the time of writing, our data shows that Saint Jean Carbon Inc. has a market capitalization of CA$1.9m, and reported total annual CEO compensation of CA$179k for the year to October 2019. Notably, that's a decrease of 35% over the year before. It is worth noting that the CEO compensation consists entirely of the salary, worth CA$179k.

On comparing similar-sized companies in the industry with market capitalizations below CA$266m, we found that the median total CEO compensation was CA$158k. So it looks like Saint Jean Carbon compensates Paul Ogilvie in line with the median for the industry.

Component

2019

2018

Proportion (2019)

Salary

CA$179k

CA$275k

100%

Other

-

-

-

Total Compensation

CA$179k

CA$275k

100%

On an industry level, roughly 83% of total compensation represents salary and 17% is other remuneration. At the company level, Saint Jean Carbon pays Paul Ogilvie solely through a salary, preferring to go down a conventional route. 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

Saint Jean Carbon Inc.'s Growth

Saint Jean Carbon Inc. has seen its earnings per share (EPS) increase by 36% a year over the past three years. In the last year, its revenue is up 195%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Saint Jean Carbon Inc. Been A Good Investment?

Since shareholders would have lost about 84% over three years, some Saint Jean Carbon Inc. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Saint Jean Carbon rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, Saint Jean Carbon Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, the company has logged negative shareholder returns over the previous three years. But EPS growth is moving in a favorable direction, certainly a positive sign. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for Saint Jean Carbon that investors should think about before committing capital to this stock.

Important note: Saint Jean Carbon is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.