How Much Did Parkland's (TSE:PKI) CEO Pocket Last Year?

This article will reflect on the compensation paid to Bob Espey who has served as CEO of Parkland Corporation (TSE:PKI) since 2011. This analysis will also assess whether Parkland pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Parkland

Comparing Parkland Corporation's CEO Compensation With the industry

Our data indicates that Parkland Corporation has a market capitalization of CA$5.9b, and total annual CEO compensation was reported as CA$3.7m for the year to December 2019. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$931k.

On examining similar-sized companies in the industry with market capitalizations between CA$2.7b and CA$8.5b, we discovered that the median CEO total compensation of that group was CA$5.4m. This suggests that Bob Espey is paid below the industry median. Furthermore, Bob Espey directly owns CA$25m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. Parkland 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.

Parkland Corporation's Growth

Parkland Corporation has seen its earnings per share (EPS) increase by 39% a year over the past three years. In the last year, its revenue changed by just 0.1%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Parkland Corporation Been A Good Investment?

We think that the total shareholder return of 70%, over three years, would leave most Parkland Corporation shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

As previously discussed, Bob is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Since earnings growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 5 warning signs (and 1 which is a bit concerning) in Parkland 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.

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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