In This Article:
Key Insights
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Polaris Renewable Energy's Annual General Meeting to take place on 20th of June
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CEO Marc Murnaghan's total compensation includes salary of US$397.0k
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Total compensation is 162% above industry average
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Over the past three years, Polaris Renewable Energy's EPS fell by 28% and over the past three years, the total loss to shareholders 18%
In the past three years, the share price of Polaris Renewable Energy Inc. (TSE:PIF) has struggled to grow and now shareholders are sitting on a loss. Per share earnings growth is also lacking, despite revenue growth. The AGM coming up on 20th of June will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.
Check out our latest analysis for Polaris Renewable Energy
Comparing Polaris Renewable Energy Inc.'s CEO Compensation With The Industry
According to our data, Polaris Renewable Energy Inc. has a market capitalization of CA$277m, and paid its CEO total annual compensation worth US$526k over the year to December 2023. That's a notable decrease of 20% on last year. In particular, the salary of US$397.0k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the Canadian Renewable Energy industry with market capitalizations ranging between CA$137m and CA$549m had a median total CEO compensation of US$201k. Accordingly, our analysis reveals that Polaris Renewable Energy Inc. pays Marc Murnaghan north of the industry median. Furthermore, Marc Murnaghan directly owns CA$6.4m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2023 | 2022 | Proportion (2023) |
| Salary | US$397k | US$404k | 75% |
| Other | US$129k | US$253k | 25% |
| Total Compensation | US$526k | US$656k | 100% |
On an industry level, roughly 30% of total compensation represents salary and 70% is other remuneration. Polaris Renewable Energy is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Polaris Renewable Energy Inc.'s Growth Numbers
Over the last three years, Polaris Renewable Energy Inc. has shrunk its earnings per share by 28% per year. It achieved revenue growth of 19% over the last year.