The results at Swiss Water Decaffeinated Coffee Inc. (TSE:SWP) have been quite disappointing recently and CEO Frank Dennis bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 25 June 2021. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.
See our latest analysis for Swiss Water Decaffeinated Coffee
How Does Total Compensation For Frank Dennis Compare With Other Companies In The Industry?
At the time of writing, our data shows that Swiss Water Decaffeinated Coffee Inc. has a market capitalization of CA$27m, and reported total annual CEO compensation of CA$600k for the year to December 2020. Notably, that's a decrease of 20% over the year before. Notably, the salary which is CA$356.9k, represents a considerable chunk of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below CA$249m, we found that the median total CEO compensation was CA$191k. This suggests that Frank Dennis is paid more than the median for the industry. Furthermore, Frank Dennis directly owns CA$481k worth of shares in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | CA$357k | CA$350k | 59% |
| Other | CA$243k | CA$398k | 41% |
| Total Compensation | CA$600k | CA$748k | 100% |
On an industry level, roughly 59% of total compensation represents salary and 41% is other remuneration. Swiss Water Decaffeinated Coffee is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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.
Swiss Water Decaffeinated Coffee Inc.'s Growth
Swiss Water Decaffeinated Coffee Inc. has reduced its earnings per share by 24% a year over the last three years. In the last year, its revenue is up 6.9%.
The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.