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Share price growth at Pembina Pipeline Corporation (TSE:PPL) has remained rather flat over the last few years and it may be because earnings has struggled to grow at all. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 07 May 2021. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.
See our latest analysis for Pembina Pipeline
Comparing Pembina Pipeline Corporation's CEO Compensation With the industry
Our data indicates that Pembina Pipeline Corporation has a market capitalization of CA$21b, and total annual CEO compensation was reported as CA$8.0m for the year to December 2020. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$1.2m.
In comparison with other companies in the industry with market capitalizations over CA$9.9b , the reported median total CEO compensation was CA$8.0m. From this we gather that Mick Dilger is paid around the median for CEOs in the industry. Moreover, Mick Dilger also holds CA$7.6m worth of Pembina Pipeline stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | CA$1.2m | CA$1.1m | 15% |
| Other | CA$6.8m | CA$6.9m | 85% |
| Total Compensation | CA$8.0m | CA$8.0m | 100% |
On an industry level, roughly 52% of total compensation represents salary and 48% is other remuneration. In Pembina Pipeline's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Pembina Pipeline Corporation's Growth Numbers
Over the last three years, Pembina Pipeline Corporation has shrunk its earnings per share by 18% per year. In the last year, its revenue is down 14%.
Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.