Most Shareholders Will Probably Agree With Green Rise Foods Inc.'s (CVE:GRF) CEO Compensation

Key Insights

• Green Rise Foods will host its Annual General Meeting on 5th of September
• Salary of CA$150.0k is part of CEO Vincent Narang's total remuneration
• The overall pay is 57% below the industry average
• Green Rise Foods' EPS grew by 13% over the past three years while total shareholder loss over the past three years was 69%

Shareholders may be wondering what CEO Vincent Narang plans to do to improve the less than great performance at Green Rise Foods Inc. (CVE:GRF) recently. At the next AGM coming up on 5th of September, they can influence managerial decision making through voting on resolutions, including executive remuneration. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Check out our latest analysis for Green Rise Foods

How Does Total Compensation For Vincent Narang Compare With Other Companies In The Industry?

According to our data, Green Rise Foods Inc. has a market capitalization of CA$25m, and paid its CEO total annual compensation worth CA$153k over the year to December 2023. Notably, that's an increase of 30% over the year before. Notably, the salary which is CA$150.0k, represents most of the total compensation being paid.

In comparison with other companies in the Canadian Food industry with market capitalizations under CA$269m, the reported median total CEO compensation was CA$357k. That is to say, Vincent Narang is paid under the industry median. Furthermore, Vincent Narang directly owns CA$3.6m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	CA$150k	CA$115k	98%
Other	CA$3.2k	CA$2.4k	2%
Total Compensation	CA$153k	CA$118k	100%

Talking in terms of the industry, salary represented approximately 51% of total compensation out of all the companies we analyzed, while other remuneration made up 49% of the pie. Green Rise Foods is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Green Rise Foods Inc.'s Growth

Over the past three years, Green Rise Foods Inc. has seen its earnings per share (EPS) grow by 13% per year. It achieved revenue growth of 16% 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. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Green Rise Foods Inc. Been A Good Investment?

With a total shareholder return of -69% over three years, Green Rise Foods Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Green Rise Foods pays its CEO a majority of compensation through a salary. The loss to shareholders over the past three years is certainly concerning. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. A key focus for the board and management will be how to align the share price with fundamentals. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 2 which don't sit too well with us) in Green Rise Foods we think you should know about.

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

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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.