Should You Worry About Canaccord Genuity Group Inc.’s (TSE:CF) CEO Salary Level?
Dan Daviau has been the CEO of Canaccord Genuity Group Inc. (TSE:CF) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. 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 Canaccord Genuity Group
How Does Dan Daviau’s Compensation Compare With Similar Sized Companies?
According to our data, Canaccord Genuity Group Inc. has a market capitalization of CA$551m, and pays its CEO total annual compensation worth CA$6.2m. (This is based on the year to 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$850k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$273m to CA$1.1b. The median total CEO compensation was CA$1.4m.
Thus we can conclude that Dan Daviau receives more in total compensation than the median of a group of companies in the same market, and of similar size to Canaccord Genuity Group Inc.. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Canaccord Genuity Group, below.
Is Canaccord Genuity Group Inc. Growing?
Canaccord Genuity Group Inc. has increased its earnings per share (EPS) by an average of 100% a year, over the last three years Its revenue is up 38% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Canaccord Genuity Group Inc. Been A Good Investment?
Canaccord Genuity Group Inc. has served shareholders reasonably well, with a total return of 16% over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary…
We compared total CEO remuneration at Canaccord Genuity Group Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. We also note that, over the same time frame, shareholder returns haven’t been bad. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management. Whatever your view on compensation, you might want to check if insiders are buying or selling Canaccord Genuity Group shares (free trial).
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of 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 editorial-team@simplywallst.com.
