In This Article:
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2003 Brian McManus was appointed CEO of Stella-Jones Inc. (TSE:SJ). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Stella-Jones
How Does Brian McManus's Compensation Compare With Similar Sized Companies?
According to our data, Stella-Jones Inc. has a market capitalization of CA$3.1b, and pays its CEO total annual compensation worth CA$9.6m. (This figure is for the year to December 2018). Notably, that's an increase of 475% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at CA$750k. We looked at a group of companies with market capitalizations from CA$1.3b to CA$4.3b, and the median CEO total compensation was CA$3.1m.
As you can see, Brian McManus is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Stella-Jones Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Stella-Jones has changed over time.
Is Stella-Jones Inc. Growing?
Stella-Jones Inc. has increased its earnings per share (EPS) by an average of 1.3% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 13%.
I would argue that the modest growth in revenue is a notable positive. And, while modest, the earnings per share growth is noticeable. Although we'll stop short of calling the stock a top performer, we think the company has potential. You might want to check this free visual report on analyst forecasts for future earnings.
Has Stella-Jones Inc. Been A Good Investment?
Given the total loss of 2.8% over three years, many shareholders in Stella-Jones Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared total CEO remuneration at Stella-Jones Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.