CEO Patrick Goodfellow has done a decent job of delivering relatively good performance at Goodfellow Inc. (TSE:GDL) recently. 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 22 June 2021. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Goodfellow

How Does Total Compensation For Patrick Goodfellow Compare With Other Companies In The Industry?

Our data indicates that Goodfellow Inc. has a market capitalization of CA$85m, and total annual CEO compensation was reported as CA$506k for the year to November 2020. That's a notable increase of 35% on last year. In particular, the salary of CA$300.7k, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below CA$243m, reported a median total CEO compensation of CA$302k. Hence, we can conclude that Patrick Goodfellow is remunerated higher than the industry median. Moreover, Patrick Goodfellow also holds CA$610k worth of Goodfellow stock directly under their own name.

Speaking on an industry level, nearly 41% of total compensation represents salary, while the remainder of 59% is other remuneration. Goodfellow is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Goodfellow Inc.'s Growth

Over the past three years, Goodfellow Inc. has seen its earnings per share (EPS) grow by 118% per year. In the last year, its revenue is up 7.6%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Goodfellow Inc. Been A Good Investment?

We think that the total shareholder return of 57%, over three years, would leave most Goodfellow Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Goodfellow that investors should be aware of in a dynamic business environment.

Switching gears from Goodfellow, 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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