Yahoo Finance Shareholders May Not Be So Generous With Yellow Pages Limited's (TSE:Y) CEO Compensation And Here's Why
Key Insights
Yellow Pages will host its Annual General Meeting on 9th of May
Salary of CA$875.0k is part of CEO David Eckert's total remuneration
Total compensation is 577% above industry average
Yellow Pages' three-year loss to shareholders was 11% while its EPS grew by 15% over the past three years
As many shareholders of Yellow Pages Limited (TSE:Y) will be aware, they have not made a gain on their investment in the past three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 9th of May. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
Check out our latest analysis for Yellow Pages
Comparing Yellow Pages Limited's CEO Compensation With The Industry
According to our data, Yellow Pages Limited has a market capitalization of CA$132m, and paid its CEO total annual compensation worth CA$3.6m over the year to December 2023. We note that's a decrease of 60% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$875k.
In comparison with other companies in the Canadian Interactive Media and Services industry with market capitalizations under CA$274m, the reported median total CEO compensation was CA$537k. This suggests that David Eckert is paid more than the median for the industry.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$875k | CA$875k | 24% |
Other | CA$2.8m | CA$8.3m | 76% |
Total Compensation | CA$3.6m | CA$9.1m | 100% |
Talking in terms of the industry, salary represented approximately 63% of total compensation out of all the companies we analyzed, while other remuneration made up 37% of the pie. Yellow Pages 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.
Yellow Pages Limited's Growth
Yellow Pages Limited's earnings per share (EPS) grew 15% per year over the last three years. Its revenue is down 11% over the previous year.
Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Yellow Pages Limited Been A Good Investment?
Given the total shareholder loss of 11% over three years, many shareholders in Yellow Pages Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
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 did our research and identified 4 warning signs (and 2 which are a bit unpleasant) in Yellow Pages we think you should know about.
Switching gears from Yellow Pages, 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.
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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.
