We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Decisive Dividend Corporation's (CVE:DE) CEO For Now

editorial-team@simplywallst.com (Simply Wall St)

19 June 2024 at 7:01 am·3-min read

Key Insights

Decisive Dividend to hold its Annual General Meeting on 25th of June
Total pay for CEO Jeff Schellenberg includes CA$322.5k salary
The overall pay is 96% above the industry average
Decisive Dividend's EPS grew by 84% over the past three years while total shareholder return over the past three years was 149%

Performance at Decisive Dividend Corporation (CVE:DE) has been reasonably good and CEO Jeff Schellenberg has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 25th of June. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Decisive Dividend

Comparing Decisive Dividend Corporation's CEO Compensation With The Industry

At the time of writing, our data shows that Decisive Dividend Corporation has a market capitalization of CA$142m, and reported total annual CEO compensation of CA$583k for the year to December 2023. That's a notable increase of 71% on last year. In particular, the salary of CA$322.5k, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the Canada Industrials industry with market capitalizations below CA$274m, reported a median total CEO compensation of CA$297k. This suggests that Jeff Schellenberg is paid more than the median for the industry. Furthermore, Jeff Schellenberg directly owns CA$613k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	CA$323k	CA$280k	55%
Other	CA$260k	CA$60k	45%
Total Compensation	CA$583k	CA$340k	100%

Talking in terms of the industry, salary represented approximately 77% of total compensation out of all the companies we analyzed, while other remuneration made up 23% of the pie. Decisive Dividend sets aside a smaller share of compensation for 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.

Decisive Dividend Corporation's Growth

Over the past three years, Decisive Dividend Corporation has seen its earnings per share (EPS) grow by 84% per year. It achieved revenue growth of 20% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Decisive Dividend Corporation Been A Good Investment?

Boasting a total shareholder return of 149% over three years, Decisive Dividend Corporation has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Decisive Dividend (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Important note: Decisive Dividend 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.

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.

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

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Key Insights

Comparing Decisive Dividend Corporation's CEO Compensation With The Industry

Decisive Dividend Corporation's Growth

Has Decisive Dividend Corporation Been A Good Investment?

To Conclude...

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