Sholom Feldman has been the CEO of Cann Global Limited (ASX:CGB) since 2007, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Cann Global pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Cann Global
Comparing Cann Global Limited's CEO Compensation With the industry
Our data indicates that Cann Global Limited has a market capitalization of AU$16m, and total annual CEO compensation was reported as AU$312k for the year to June 2020. That is, the compensation was roughly the same as last year. Notably, the salary of AU$312k is the entirety of the CEO compensation.
In comparison with other companies in the industry with market capitalizations under AU$279m, the reported median total CEO compensation was AU$466k. In other words, Cann Global pays its CEO lower than the industry median.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$312k | AU$312k | 100% |
| Other | - | - | - |
| Total Compensation | AU$312k | AU$312k | 100% |
Speaking on an industry level, nearly 58% of total compensation represents salary, while the remainder of 42% is other remuneration. At the company level, Cann Global pays Sholom Feldman solely through a salary, preferring to go down a conventional route. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Cann Global Limited's Growth Numbers
Cann Global Limited has reduced its earnings per share by 6.1% a year over the last three years. It achieved revenue growth of 269% over the last year.
Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Cann Global Limited Been A Good Investment?
Given the total shareholder loss of 73% over three years, many shareholders in Cann Global Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
Cann Global pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we noted earlier, Cann Global pays its CEO lower than the norm for similar-sized companies belonging to the same industry. But poor shareholder returns EPS growth have hampered the company over the past three years. In contrast, revenues have increased more recently. Although it's fair to say CEO compensation is modest, shareholders might want to see healthier investor returns before thinking Sholom deserves a raise.