TELUS International (Cda) Inc.'s (NYSE:TIXT) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• TELUS International (Cda) will host its Annual General Meeting on 17th of May

• Total pay for CEO Jeff Puritt includes US$850.0k salary

• The overall pay is 54% above the industry average

• Over the past three years, TELUS International (Cda)'s EPS fell by 15% and over the past three years, the total loss to shareholders 78%

The results at TELUS International (Cda) Inc. (NYSE:TIXT) have been quite disappointing recently and CEO Jeff Puritt bears some responsibility for this. At the upcoming AGM on 17th of May, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for TELUS International (Cda)

How Does Total Compensation For Jeff Puritt Compare With Other Companies In The Industry?

According to our data, TELUS International (Cda) Inc. has a market capitalization of US$1.7b, and paid its CEO total annual compensation worth US$8.7m over the year to December 2023. We note that's a decrease of 17% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$850k.

On comparing similar companies from the American Professional Services industry with market caps ranging from US$1.0b to US$3.2b, we found that the median CEO total compensation was US$5.7m. This suggests that Jeff Puritt is paid more than the median for the industry. Moreover, Jeff Puritt also holds US$3.2m worth of TELUS International (Cda) stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 14% of total compensation out of all the companies we analyzed, while other remuneration made up 86% of the pie. TELUS International (Cda) sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at TELUS International (Cda) Inc.'s Growth Numbers

Over the last three years, TELUS International (Cda) Inc. has shrunk its earnings per share by 15% per year. It achieved revenue growth of 4.9% over the last year.

Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has TELUS International (Cda) Inc. Been A Good Investment?

The return of -78% over three years would not have pleased TELUS International (Cda) Inc. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

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 2 warning signs (and 1 which is a bit concerning) in TELUS International (Cda) we think you should know about.

Switching gears from TELUS International (Cda), if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.