Should You Worry About Canaccord Genuity Group Inc.’s (TSE:CF) CEO Salary Level?

In This Article:

Dan Daviau has been the CEO of Canaccord Genuity Group Inc. (TSE:CF) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Canaccord Genuity Group

How Does Dan Daviau’s Compensation Compare With Similar Sized Companies?

According to our data, Canaccord Genuity Group Inc. has a market capitalization of CA$551m, and pays its CEO total annual compensation worth CA$6.2m. (This is based on the year to 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CA$850k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CA$273m to CA$1.1b. The median total CEO compensation was CA$1.4m.

Thus we can conclude that Dan Daviau receives more in total compensation than the median of a group of companies in the same market, and of similar size to Canaccord Genuity Group Inc.. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see a visual representation of the CEO compensation at Canaccord Genuity Group, below.

TSX:CF CEO Compensation January 1st 19
TSX:CF CEO Compensation January 1st 19

Is Canaccord Genuity Group Inc. Growing?

Canaccord Genuity Group Inc. has increased its earnings per share (EPS) by an average of 100% a year, over the last three years Its revenue is up 38% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.

Shareholders might be interested in this free visualization of analyst forecasts. .

Has Canaccord Genuity Group Inc. Been A Good Investment?

Canaccord Genuity Group Inc. has served shareholders reasonably well, with a total return of 16% over three years. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary…

We compared total CEO remuneration at Canaccord Genuity Group Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.