key insights
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The Global Education Community Annual Meeting will be held on February 23rd
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CEO Toby Chiu's total compensation includes salary of CAD 312,000
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Total compensation is 49% below the industry average
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Over the past three years, Global Education Communities's EPS has decreased by 20%, resulting in total shareholder losses of 44%.
disappointing performance in Global Education Community Co., Ltd. (TSE:GEC) Some shareholders will be quite disappointed. At the shareholders' meeting to be held on February 23, shareholders may have the opportunity to influence management to improve business performance by voting on resolutions such as executive compensation. Based on our analysis below, we think CEO compensation is appropriate at the moment.
Check out our latest analysis for the Global Education Community.
How does Toby Chew's total compensation compare to his peers?
At the time of writing, our data shows that Global Education Communities Corp. has a market capitalization of CA$26m, and is reporting total annual CEO compensation of CA$312k to August 2023. This is a slight decrease of 7.1% from before. Year. Notably, the CA$312,000 salary is the CEO's full compensation.
When we compare similar sized companies in the Canadian Consumer Services industry with market capitalizations below CA$270m, we find that the median total CEO compensation is CA$612k. That means Toby Chew's salary is below the industry median. Furthermore, Toby Chu directly owns his CA$3.3m worth of shares in the company, suggesting that he is deeply invested in its success.
|
component |
2023 |
2022 |
Percentage (2023) |
|
salary |
312,000 CAD |
296,000 CAD |
100% |
|
other |
– |
40,000 Canadian dollars |
– |
|
Total compensation |
312,000 CAD |
336,000 CAD |
100% |
At an industry level, approximately 23% of total compensation is salary and 77% is other compensation. On a corporate level, Global Education Communities prefers to follow the traditional path and pay all compensation through salary. When total compensation is skewed toward salary, it generally suggests that the variable component related to performance is low.
Growth of Global Education Communities Corp.
Over the past three years, Global Education Communities Corp. has seen its earnings per share decrease by 20% per year. Last year he achieved 11% revenue growth.
Few shareholders will be happy to read that EPS has fallen. While revenue growth is good, it's outweighed by the fact that EPS has been declining over three years. These factors suggest that performance does not really justify paying CEOs highly. We don't have analyst forecasts, but you might want to evaluate this data-rich visualization of its earnings, revenue and cash flow.
Was Global Education Communities Corp. a good investment?
Few Global Education Communities Corp. shareholders will be satisfied with the return of -44% over three years. This suggests that it would be unwise for the company to pay its CEO too generously.
In summary…
Global Education Communities pays its CEO solely through salary, completely ignoring non-salary compensation. Given that shareholders are not seeing any positive return on their investment, not to mention the lack of revenue growth, this suggests that few shareholders are willing to give the CEO a raise. Maybe. At the upcoming general meeting, the board will have the opportunity to explain the measures it plans to take to improve performance.
While CEO compensation is an important area to focus on, you should also pay attention to other characteristics of the company.we have identified 5 warning signs for the global education community (Two things are important!) You should be careful before investing here.
Important note: Global Education Communities is an exciting stock, but we understand that investors may be looking for an unencumbered balance sheet and a large return.maybe you can find something Better This list contains interesting companies with high ROE 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 using only unbiased methodologies, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
