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Shareholders May Not Be So Generous With Celestica Inc.'s (TSE:CLS) CEO Compensation And Here's Why

Key Insights

  • Celestica to hold its Annual General Meeting on 25th of April

  • Salary of US$987.7k is part of CEO Rob Mionis's total remuneration

  • The overall pay is 35% above the industry average

  • Celestica's total shareholder return over the past three years was 494% while its EPS grew by 64% over the past three years

Under the guidance of CEO Rob Mionis, Celestica Inc. (TSE:CLS) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 25th of April. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Celestica

How Does Total Compensation For Rob Mionis Compare With Other Companies In The Industry?

At the time of writing, our data shows that Celestica Inc. has a market capitalization of CA$7.2b, and reported total annual CEO compensation of US$13m for the year to December 2023. We note that's an increase of 11% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$988k.

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On comparing similar companies from the Canadian Electronic industry with market caps ranging from CA$5.5b to CA$17b, we found that the median CEO total compensation was US$9.3m. Hence, we can conclude that Rob Mionis is remunerated higher than the industry median. Furthermore, Rob Mionis directly owns CA$45m worth of shares in the company, implying that they are deeply invested in the company's success.

Component

2023

2022

Proportion (2023)

Salary

US$988k

US$950k

8%

Other

US$12m

US$10m

92%

Total Compensation

US$13m

US$11m

100%

On an industry level, around 72% of total compensation represents salary and 28% is other remuneration. Celestica pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
ceo-compensation

A Look at Celestica Inc.'s Growth Numbers

Celestica Inc. has seen its earnings per share (EPS) increase by 64% a year over the past three years. Its revenue is up 9.8% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Celestica Inc. Been A Good Investment?

Boasting a total shareholder return of 494% over three years, Celestica Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Celestica that investors should think about before committing capital to this stock.

Switching gears from Celestica, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.