Yahoo Finance It Looks Like Dominion Lending Centres Inc.'s (TSE:DLCG) CEO May Expect Their Salary To Be Put Under The Microscope
Key Insights
Dominion Lending Centres' Annual General Meeting to take place on 9th of May
Salary of CA$423.5k is part of CEO Gary Mauris's total remuneration
The total compensation is 127% higher than the average for the industry
Dominion Lending Centres' three-year loss to shareholders was 26% while its EPS was down 86% over the past three years
Shareholders will probably not be too impressed with the underwhelming results at Dominion Lending Centres Inc. (TSE:DLCG) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 9th of May. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.
View our latest analysis for Dominion Lending Centres
Comparing Dominion Lending Centres Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that Dominion Lending Centres Inc. has a market capitalization of CA$145m, and reported total annual CEO compensation of CA$566k for the year to December 2023. We note that's an increase of 34% above last year. Notably, the salary which is CA$423.5k, represents most of the total compensation being paid.
In comparison with other companies in the Canadian Diversified Financial industry with market capitalizations under CA$274m, the reported median total CEO compensation was CA$250k. Hence, we can conclude that Gary Mauris is remunerated higher than the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$424k | CA$404k | 75% |
Other | CA$143k | CA$20k | 25% |
Total Compensation | CA$566k | CA$424k | 100% |
Talking in terms of the industry, salary represented approximately 75% of total compensation out of all the companies we analyzed, while other remuneration made up 25% of the pie. Our data reveals that Dominion Lending Centres allocates salary more or less in line with the wider market. 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 Dominion Lending Centres Inc.'s Growth Numbers
Dominion Lending Centres Inc. has reduced its earnings per share by 86% a year over the last three years. It saw its revenue drop 12% over the last year.
Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-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..
Has Dominion Lending Centres Inc. Been A Good Investment?
Given the total shareholder loss of 26% over three years, many shareholders in Dominion Lending Centres Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 2 which are potentially serious) in Dominion Lending Centres we think you should know about.
Important note: Dominion Lending Centres is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
