CEO George Schindler has done a decent job of delivering relatively good performance at CGI Inc. (TSE:GIB.A) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 02 February 2022. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.
View our latest analysis for CGI
Comparing CGI Inc.'s CEO Compensation With the industry
According to our data, CGI Inc. has a market capitalization of CA$25b, and paid its CEO total annual compensation worth CA$13m over the year to September 2021. We note that's an increase of 36% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$1.6m.
On comparing similar companies in the industry with market capitalizations above CA$10b, we found that the median total CEO compensation was CA$14m. From this we gather that George Schindler is paid around the median for CEOs in the industry. Furthermore, George Schindler directly owns CA$5.0m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2021 | 2020 | Proportion (2021) |
| Salary | CA$1.6m | CA$946k | 12% |
| Other | CA$11m | CA$8.5m | 88% |
| Total Compensation | CA$13m | CA$9.5m | 100% |
Speaking on an industry level, nearly 79% of total compensation represents salary, while the remainder of 21% is other remuneration. CGI pays a modest slice of remuneration through salary, as compared 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 CGI Inc.'s Growth Numbers
CGI Inc. has seen its earnings per share (EPS) increase by 12% a year over the past three years. In the last year, its revenue changed by just 0.3%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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.
Has CGI Inc. Been A Good Investment?
CGI Inc. has served shareholders reasonably well, with a total return of 19% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
To Conclude...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.