Management compensation is the total amount of salaries, bonuses, shares, stock options and other benefits earned in a specific period (often a fiscal year). As long as the management compensation is reasonable you will never hear a shareholder complain about the amount of compensation paid.
As I mainly invest in American and Canadian listed stocks, I have only included the data sources of these countries in this article.
American Management Compensation Data
The American executive compensation data can be found on the website of the Security and Exchange Commission (SEC) in the filing that is called “DEF 14A.” In order to find this statement please follow these steps:
- Go to: http://sec.gov/edgar/searchedgar/companysearch.html and enter the company name or stock symbol of the company which you are going to analyse, and press “enter”;
- Scroll down until you will find the most recent “DEF 14A” filing in which all the data about management’s compensation is included. (For the management compensation of foreign private issuers you have to look for form 20-F.)
Canadian Management Compensation Data
The Canadian executive compensation data can be found on the website of the System for Electronic Document Analysis and Retrieval (SEDAR) in the document that is called “Proxy Circular”. In order to find this document please follow these steps:
- Go to: http://www.sedar.com/search/search_form_pc_en.htm and enter the company name of the company which you are going to analyse;
- Select “Proxy Circular” as “Document Type” and make sure that the “Date of filing” range is set wide enough to come up with the most recent filed proxy circular;
- Click the “Search” button and open the file to inform yourself about management’s compensation.
You may also want to read...
- Mining Companies Analysis - Learn How to Invest in Mining Stocks. To execute your own mining companies analysis, I have created a lot of (sub)pages about the relevant terminology and working methods from the mining sector.
- Oil and Gas Companies Analysis - How to Invest in Energy Stocks. I created different pages about the relevant terminology and working methods from the energy sector to conduct your own analysis for oil and gas companies.
- Understanding the Stock Market - How Do Stocks Work. To help you with understanding the stock market, I have created some articles to explain how stocks work and I also reveal my own stock market analysis in this chapter.
- How to Invest in Shares - Learn How to Start Investing in Stocks. In this chapter I inform you how to invest in shares - the UndervaluedEquity.com way. I also reveal which (free) resources I use to execute my due diligence.
- How I Invest in Stocks - My Preconditions for Selecting Undervalued Stocks. In this chapter I answer the question: how do I invest in stocks? Thus, I explain which investment rules I follow whilst selecting companies for my stock portfolio.
- Stock Investment Analysis - A More Detailed Elaboration on How to Buy Stocks. When a company complies with my preconditions for selecting undervalued stocks, I will elaborate my stock investment analysis to assess the quality of it's assets, management, etc.