Mike DeGiglio has been the CEO of Village Farms International Inc (TSE:VFF) since 1989. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Mike DeGiglio’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Village Farms International Inc has a market cap of CA$291m, and is paying total annual CEO compensation of US$1m. We note that’s an increase of 43% above last year. When we examined a selection of companies with market caps ranging from US$100m to US$400m, we found the median CEO compensation was US$684k.
It would therefore appear that Village Farms International Inc pays Mike DeGiglio more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Village Farms International has changed over time.
Is Village Farms International Inc Growing?
On average over the last three years, Village Farms International Inc has shrunk earnings per share by 5.2% each year. In the last year, its revenue is down -1.9%.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Village Farms International Inc Been A Good Investment?
I think that the total shareholder return of 665%, over three years, would leave most Village Farms International Inc shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
We compared the total CEO remuneration paid by Village Farms International Inc, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
On the other hand, returns have been good, so the company is doing something right. Considering this, shareholders are probably not too worried about the CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Village Farms International Inc (free visualization of insider trades).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.