Performance at G6 Materials Corp. (CVE:GGG) has been reasonably good and CEO Daniel Stolyarov has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 16 December 2021. Here is our take on why we think the CEO compensation looks appropriate.
Comparing G6 Materials Corp.'s CEO Compensation With the industry
Our data indicates that G6 Materials Corp. has a market capitalization of CA$17m, and total annual CEO compensation was reported as US$144k for the year to May 2021. We note that's an increase of 20% above last year. It is worth noting that the CEO compensation consists entirely of the salary, worth US$144k.
In comparison with other companies in the industry with market capitalizations under CA$254m, the reported median total CEO compensation was US$192k. From this we gather that Daniel Stolyarov is paid around the median for CEOs in the industry. What's more, Daniel Stolyarov holds CA$1.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Speaking on an industry level, nearly 67% of total compensation represents salary, while the remainder of 33% is other remuneration. At the company level, G6 Materials pays Daniel Stolyarov 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.
G6 Materials Corp.'s Growth
Earnings per share at G6 Materials Corp. are much the same as they were three years ago, albeit with slightly higher. Its revenue is down 21% over the previous year.
We would argue that the lack of revenue growth in the last year is less than ideal, but the modest EPS growth gives us some relief. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has G6 Materials Corp. Been A Good Investment?
Most shareholders would probably be pleased with G6 Materials Corp. for providing a total return of 50% over three years. 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.
G6 Materials pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 4 warning signs for G6 Materials (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.