Fronsac Real Estate Investment Trust (CVE: FRO.UN) CEO could see pay rise on the horizon

Shareholders are unlikely to be disappointed with the strong results of Fronsac Real Estate Investment Trust (CVE: FRO.UN) recently and they’ll keep that in mind at the AGM on May 21, 2021. They’ll likely be more interested in hearing the board discuss future initiatives to further improve business. when they vote on resolutions such as executive compensation. Here’s our take on why we think CEO pay is fair and may even justify a raise.

Check out our latest review for Fronsac Real Estate Investment Trust

Comparison of the compensation of the CEOs of Fronsac Real Estate Investment Trust with the industry

Our data indicates that Fronsac Real Estate Investment Trust has a market capitalization of C $ 128 million and that the CEO’s total annual compensation was reported at C $ 161,000 for the year up to December 2020. This is about ‘a fairly small increase of 4.6% over the previous year. In particular, the salary of CA $ 148.8k represents a considerable portion of the total compensation paid to the CEO.

Comparing similarly sized companies in the industry with market capitalizations below C $ 242 million, we found that the median total CEO compensation was C $ 514,000. That is, Jason Parravano is paid below the industry median. Additionally, Jason Parravano owns C $ 701,000 in company stock in his own name, indicating that they have a lot of skin in the game.

Component 2020 2019 Proportion (2020)
Salary CA $ 149K CA $ 142K 93%
Other CA $ 12K CA $ 12K 7%
Total compensation CA $ 161K CA $ 154K 100%

Speaking at the industry level, almost 33% of total compensation is salary, while the remainder 67% is other compensation. According to our research, Fronsac Real Estate Investment Trust allocated a higher percentage of salary to salary compared to the broader industry. If the total compensation moves towards salary, this suggests that the variable part – which is generally linked to performance, is lower.

TSXV: Compensation of the CEO of FRO.UN May 15, 2021

Growth of the Fronsac real estate investment fund

Over the past three years, Fronsac Real Estate Investment Trust has not seen much change in earnings per share, although it has deteriorated slightly. Last year, its turnover increased by 67%.

The reduction in BPA over three years is undoubtedly worrying. But in contrast, revenue growth is strong, suggesting future potential for EPS growth. It is currently difficult to reach a conclusion on the performance of the company. This may be one to watch out for. Historical performance can sometimes be a good indicator of what’s to come, but if you want to look into the future of the business, this might be of interest to you. free viewing analyst forecasts.

Was the Fronsac Real Estate Investment Fund a good investment?

With a total return for shareholders of 44% over three years, Fronsac Real Estate Investment Trust has performed well with shareholders. As a result, some may think that the CEO should be paid more than normal for companies of similar size.

In summary…

The overall performance of the company, while not bad, could be better. If it manages to keep the current trend going, CEO compensation may well be one of shareholders’ least concerns. In fact, strategic decisions that could impact the future of the business could be a much more interesting topic for investors, as it would help them set their long-term expectations.

CEO compensation is just one of the many factors to consider when reviewing company performance. We have identified 3 warning signs for Fronsac Real Estate Investment Trust (1 shouldn’t be ignored!) Which you should be aware of before investing here.

Arguably, the quality of the business is much more important than the compensation levels of CEOs. So look at this free list of interesting companies that have high return on equity and low debt.

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take into account your goals or your financial situation. We aim to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative information. Simply Wall St has no position in any of the stocks mentioned.
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