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George Mavroudis became the CEO of Guardian Capital Group Limited (TSE:GCG.A) in 2011. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Guardian Capital Group
How Does George Mavroudis's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Guardian Capital Group Limited has a market cap of CA$607m, and is paying total annual CEO compensation of CA$2.5m. (This figure is for the year to December 2018). That's a modest increase of 6.8% on the prior year year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$500k. We looked at a group of companies with market capitalizations from CA$265m to CA$1.1b, and the median CEO total compensation was CA$1.4m.
Thus we can conclude that George Mavroudis receives more in total compensation than the median of a group of companies in the same market, and of similar size to Guardian Capital Group Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Guardian Capital Group has changed from year to year.
Is Guardian Capital Group Limited Growing?
Over the last three years Guardian Capital Group Limited has shrunk its earnings per share by an average of 6.7% per year (measured with a line of best fit). In the last year, its revenue is up 13%.
Sadly for shareholders, earnings per share are actually down, over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.
Has Guardian Capital Group Limited Been A Good Investment?
Guardian Capital Group Limited has served shareholders reasonably well, with a total return of 22% 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.