It is unlikely that the CEO of Polaris Renewable Energy Inc. (TSE:PIF) has seen a huge pay rise this year

Key insights

• The Annual General Meeting of Polaris Renewable Energy will be held on June 20

• CEO Marc Murnaghan’s total compensation includes a salary of $397,000. USD

• Total compensation is 162% above the industry average

• Over the last three years, Polaris Renewable Energy’s EPS has declined by 28%, and over the last three years the total loss to shareholders has been 18%.

Over the last three years, the company’s share price Polaris Renewable Energy Inc. (TSE:PIF) has struggled with growth and shareholders are currently suffering losses. Despite the increase in revenues, there is no increase in earnings per share. The Annual General Meeting on June 20 will be an opportunity for shareholders to have their concerns addressed by management and influence management by voting on resolutions such as executive compensation. Based on the analysis below, we think shareholders may be cautious about approving CEO raises at this time.

Check out our latest analysis for Polaris Renewable Energy

Polaris Renewable Energy Inc. CEO salary comparison. with industry remuneration

According to our data, Polaris Renewable Energy Inc. has a market capitalization of C$277 million and paid its CEO total annual compensation worth C$526,000. USD during the year to December 2023. This represents a noticeable decline of 20% compared to last year. In particular, remuneration in the amount of PLN 397.0 thousand. dollars represents a huge portion of the total compensation paid to the CEO.

For comparison, other companies in the Canadian renewable energy industry with market capitalizations ranging from C$137 million to C$549 million had average total CEO compensation of C$201,000. USD. Therefore, our analysis shows that Polaris Renewable Energy Inc. pays Marc Murnaghan north of the industry median. Moreover, Marc Murnaghan directly owns C$6.4 million worth of company stock, which means they are deeply invested in the company’s success.

At an industry level, approximately 30% of total compensation is salary and 70% is other compensation. Polaris Renewable Energy pays a higher portion of its compensation in wages compared to the industry as a whole. If compensation dominates total compensation, it suggests that the CEO’s compensation is less based on a variable component, which is typically tied to performance.

A look at Polaris Renewable Energy Inc.’s growth stats

Over the past three years, Polaris Renewable Energy Inc. reduced its earnings per share by 28% annually. It has achieved revenue growth of 19% over the past year.

The story continues

The decline in EPS may worry some investors. However, in contrast, revenue growth is strong, suggesting future EPS growth potential. These two metrics are moving in different directions, so while it’s difficult to judge performance with certainty, we think the stock is worth keeping an eye on. Historical performance can sometimes be a good indicator of what’s to come, but if you want to peek into a company’s future, you might be interested in free visualization of analyst forecasts.

Is Polaris Renewable Energy Inc. was it a good investment?

Given a total shareholder loss of 18% over three years, many Polaris Renewable Energy Inc. shareholders is probably, to put it mildly, rather dissatisfied. This suggests that it would be unwise for a company to pay its CEO too generously.

To sum up…

Shareholder returns are disappointing, as is the lack of earnings growth, which goes some way to explaining the weak earnings. Shareholders will have the opportunity at the upcoming Annual Meeting to ask the board questions about key issues such as CEO compensation or other concerns they may have, and to reconsider their investment thesis for the company.

We can learn a lot about a company by examining its CEO compensation trends, as well as by looking at other aspects of the business. We identified 3 warning signs for Polaris Renewable Energy (2 are potentially serious!) that you should know about before investing here.

Arguably, the quality of the business is much more important than the level of CEO compensation. check it out free a list of interesting companies that have a HIGH return on equity and low debt.

Have an opinion on this article? Worried about content? contact with us directly. Alternatively, email the editorial team (at) simplywallst.com.

This article by Simply Wall St is of a general nature. We comment based on historical data and analyst forecasts, using only an unbiased methodology, and our articles are not intended to provide financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide long-term, focused analysis based on fundamental data. Please note that our analysis may not reflect the latest price-sensitive company announcements or qualitative content. Simply Wall St has no position in any of the stocks mentioned.

Have an opinion on this article? Worried about content? Contact us directly. You can also send an email to [email protected]