Key Insights
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Goodfood Market will host its Annual General Meeting on 16th of January
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Total pay for CEO Jonathan Ferrari includes CA$450.0k salary
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The total compensation is 91% higher than the average for the industry
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Goodfood Market's three-year loss to shareholders was 98% while its EPS was down 53% over the past three years
Goodfood Market Corp. (TSE:FOOD) has not performed well recently and CEO Jonathan Ferrari will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 16th of January. 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. We present the case why we think CEO compensation is out of sync with company performance.
Check out our latest analysis for Goodfood Market
How Does Total Compensation For Jonathan Ferrari Compare With Other Companies In The Industry?
At the time of writing, our data shows that Goodfood Market Corp. has a market capitalization of CA$22m, and reported total annual CEO compensation of CA$858k for the year to September 2023. That's a notable decrease of 38% on last year. In particular, the salary of CA$450.0k, makes up a fairly large portion of the total compensation being paid to the CEO.
For comparison, other companies in the Canadian Consumer Retailing industry with market capitalizations below CA$268m, reported a median total CEO compensation of CA$449k. Accordingly, our analysis reveals that Goodfood Market Corp. pays Jonathan Ferrari north of the industry median. What's more, Jonathan Ferrari holds CA$2.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
| Component | 2023 | 2022 | Proportion (2023) |
| Salary | CA$450k | CA$450k | 52% |
| Other | CA$408k | CA$937k | 48% |
| Total Compensation | CA$858k | CA$1.4m | 100% |
On an industry level, roughly 27% of total compensation represents salary and 73% is other remuneration. Goodfood Market pays out 52% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Goodfood Market Corp.'s Growth Numbers
Over the last three years, Goodfood Market Corp. has shrunk its earnings per share by 53% per year. In the last year, its revenue is down 37%.
The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..