Mark Hornick became the CEO of Jamieson Wellness Inc. (TSE:JWEL) in 2014, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Jamieson Wellness pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Jamieson Wellness

Comparing Jamieson Wellness Inc.'s CEO Compensation With the industry

According to our data, Jamieson Wellness Inc. has a market capitalization of CA$1.5b, and paid its CEO total annual compensation worth CA$2.5m over the year to December 2019. We note that's a small decrease of 5.5% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$620k.

On examining similar-sized companies in the industry with market capitalizations between CA$527m and CA$2.1b, we discovered that the median CEO total compensation of that group was CA$1.5m. This suggests that Mark Hornick is paid more than the median for the industry. Furthermore, Mark Hornick directly owns CA$19m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the broader industry, salary and other compensation roughly make up 50% each, of the total compensation. Jamieson Wellness pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Jamieson Wellness Inc.'s Growth Numbers

Over the past three years, Jamieson Wellness Inc. has seen its earnings per share (EPS) grow by 162% per year. It achieved revenue growth of 11% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Jamieson Wellness Inc. Been A Good Investment?

We think that the total shareholder return of 110%, over three years, would leave most Jamieson Wellness Inc. shareholders smiling. 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...

As previously discussed, Mark is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. As a result of the excellent all-round performance of the company, we believe CEO compensation is fair. And given most shareholders are probably very happy with recent returns, they might even think that Mark deserves a raise!

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Jamieson Wellness that you should be aware of before investing.

Switching gears from Jamieson Wellness, 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.

This article by Simply Wall St is general in nature. 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.

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