Thermal Energy International Inc V.TMG

Something to consider - for you approval on Proxy

[prone]

Shareholders Would Not Be Objecting To Thermal Energy International Inc.'s (CVE:TMG) CEO Compensation And Here's Why

 

Key Insights

 

Thermal Energy International's Annual General Meeting to take place on 26th of November 

 

Salary of CA$264.6k is part of CEO Bill Crossland's total remuneration 

 

Total compensation is similar to the industry average 

 

Thermal Energy International's EPS grew by 56% over the past three years while total shareholder return over the past three years was 58% 

 

We have been pretty impressed with the performance at Thermal Energy International Inc. (CVE:TMG) recently and CEO Bill Crossland deserves a mention for their role in it. Coming up to the next AGM on 26th of November, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive. 

 

View our latest analysis for Thermal Energy International 

 

How Does Total Compensation For Bill Crossland Compare With Other Companies In The Industry?

 

According to our data, Thermal Energy International Inc. has a market capitalization of CA$35m, and paid its CEO total annual compensation worth CA$315k over the year to May 2024. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at CA$264.6k constitutes the majority of total compensation received by the CEO. 

 

For comparison, other companies in the Canadian Machinery industry with market capitalizations below CA$282m, reported a median total CEO compensation of CA$334k. This suggests that Thermal Energy International remunerates its CEO largely in line with the industry average. Moreover, Bill Crossland also holds CA$1.6m worth of Thermal Energy International stock directly under their own name, which reveals to us that they have a significant personal stake in the company

[panapple42]

The salary is completely in line, especially considering many CEOs are making more than 200x the average employee. I believe he owns more than 6M shares now.  If the SP rises one penny it equates to over $60k. One nickel covers one year of salary with change.

[AlbertESG]

Many CEO's make exorbitant amounts of compensation because they are compensated based on the return that they deliver to their shareholders. Year to date, the S&P is up about 24%, and TEI shares are down about 14%; that's close to 40% underperformance. This is not something for TEI to celebrate. That being said, Bill's salary seems reasonable for his position. What investors

[Mostlyserious]

I agree with the options. If they want to price them at market, give them a two-year runway.  If you want to give them 5-years, build in some minimal rate of return that should be achieved before the gravy is scooped.  Right now the only incentive for 5-year options is to have lowest possible SP at the time of granting new ones. But, at the end of the day, we are talking about a TSX-V

[Mostlyserious]

Where did this useless piece come from?  Since when do shareholders vote on CEO's remuneration or have a say directly or indirectly in company's strategy?  And we are into "Machinery". LOL! We get to vote on the board and the auditor.  Don't care much about the auditor, but IMO time to say thank you to some of the oldest standing board members. After a decade

[prone]

The only signal would be to vote against a board member. Previously it was pointed out that oldest member of the board resided in Phoenix, was retired and no longer actively involved in business. He was replaced with a new more relevant individual. Today I believe Williams is the oldest.  He was, if I remember  connected Johnson?  Not sure of his contribution. Lots of choices

[Mostlyserious]

His resume indeed pointed out to some big players from which Thermal has not benefited during his tenure. But since mid 2000's his experience is no longer relevant. We only need so many financial types on the board. Absolutely, lot of choices from different types of industries they are doing business with and from different geographical areas. Why no US or European board member is beyond my