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The impressive results at Pollard Banknote Limited (TSE:PBL) recently will be great news for shareholders. This would be kept in mind at the upcoming AGM on 14 May 2021 which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.
Comparing Pollard Banknote Limited's CEO Compensation With the industry
Our data indicates that Pollard Banknote Limited has a market capitalization of CA$1.5b, and total annual CEO compensation was reported as CA$351k for the year to December 2020. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is CA$289.2k, represents most of the total compensation being paid.
On examining similar-sized companies in the industry with market capitalizations between CA$1.2b and CA$3.9b, we discovered that the median CEO total compensation of that group was CA$4.7m. In other words, Pollard Banknote pays its CEO lower than the industry median.
On an industry level, around 63% of total compensation represents salary and 37% is other remuneration. Pollard Banknote pays out 83% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Pollard Banknote Limited's Growth Numbers
Over the past three years, Pollard Banknote Limited has seen its earnings per share (EPS) grow by 22% per year. It achieved revenue growth of 4.1% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Pollard Banknote Limited Been A Good Investment?
Most shareholders would probably be pleased with Pollard Banknote Limited for providing a total return of 161% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 5 warning signs for Pollard Banknote that you should be aware of before investing.
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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