Here's Why Shareholders May Want To Be Cautious With Increasing Hill Incorporated's (CVE:HILL) CEO Pay Packet

In This Article:

Key Insights

  • Hill will host its Annual General Meeting on 6th of August

  • Salary of CA$293.1k is part of CEO Craig Binkley's total remuneration

  • Total compensation is 161% above industry average

  • Hill's three-year loss to shareholders was 93% while its EPS grew by 37% over the past three years

The underwhelming share price performance of Hill Incorporated (CVE:HILL) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 6th of August. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Hill

Comparing Hill Incorporated's CEO Compensation With The Industry

Our data indicates that Hill Incorporated has a market capitalization of CA$1.2m, and total annual CEO compensation was reported as CA$293k for the year to June 2024. That's a modest increase of 7.5% on the prior year. Notably, the salary of CA$293k is the entirety of the CEO compensation.

On comparing similar-sized companies in the Canada Personal Products industry with market capitalizations below CA$277m, we found that the median total CEO compensation was CA$112k. Hence, we can conclude that Craig Binkley is remunerated higher than the industry median.

Component

2024

2023

Proportion (2024)

Salary

CA$293k

CA$273k

100%

Other

-

-

-

Total Compensation

CA$293k

CA$273k

100%

On an industry level, it's fascinating to see that all of total compensation represents salary and non-salary benefits do not factor into the equation at all. On a company level, Hill prefers to reward its CEO through a salary, opting not to pay Craig Binkley through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
TSXV:HILL CEO Compensation July 31st 2024

Hill Incorporated's Growth

Hill Incorporated's earnings per share (EPS) grew 37% per year over the last three years. It saw its revenue drop 39% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.