Yahoo Finance Most Shareholders Will Probably Find That The Compensation For Ostrom Climate Solutions Inc.'s (CVE:COO) CEO Is Reasonable
Key Insights
Ostrom Climate Solutions' Annual General Meeting to take place on 25th of June
CEO Phil Cull's total compensation includes salary of CA$180.0k
The total compensation is 59% less than the average for the industry
Ostrom Climate Solutions' EPS declined by 53% over the past three years while total shareholder loss over the past three years was 23%
Shareholders may be wondering what CEO Phil Cull plans to do to improve the less than great performance at Ostrom Climate Solutions Inc. (CVE:COO) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 25th of June. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. In our opinion, CEO compensation does not look excessive and we discuss why.
Check out our latest analysis for Ostrom Climate Solutions
How Does Total Compensation For Phil Cull Compare With Other Companies In The Industry?
According to our data, Ostrom Climate Solutions Inc. has a market capitalization of CA$11m, and paid its CEO total annual compensation worth CA$182k over the year to December 2023. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at CA$180.0k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the Canadian Commercial Services industry with market capitalizations below CA$274m, reported a median total CEO compensation of CA$442k. This suggests that Phil Cull is paid below the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$180k | CA$176k | 99% |
Other | CA$1.8k | CA$1.7k | 1% |
Total Compensation | CA$182k | CA$178k | 100% |
Speaking on an industry level, nearly 36% of total compensation represents salary, while the remainder of 64% is other remuneration. Investors will find it interesting that Ostrom Climate Solutions pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Ostrom Climate Solutions Inc.'s Growth Numbers
Over the last three years, Ostrom Climate Solutions Inc. has shrunk its earnings per share by 53% per year. It achieved revenue growth of 25% over the last year.
The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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.
Has Ostrom Climate Solutions Inc. Been A Good Investment?
With a three year total loss of 23% for the shareholders, Ostrom Climate Solutions Inc. would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Phil receives almost all of their compensation through a salary. The loss to shareholders over the past three years is certainly concerning. The fact that earnings growth has gone backwards could be a factor for the downward trend in the share price. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 6 warning signs for Ostrom Climate Solutions (4 can't be ignored!) that you should be aware of before investing here.
Important note: Ostrom Climate Solutions 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
