MJ Biz reports on the latest in cannabis CEO compensation let’s hope that Dr Goodall’s foundation receives a good share of it.
Neptune Wellness Solutions, a Quebec-based health and wellness company involved in the cannabis industry, paid CEO Michael Cammarata almost 70 million Canadian dollars ($56.7 million) in mostly noncash compensation in the past two fiscal years, according to regulatory filings with the U.S. Securities and Exchange Commission.
Cammarata’s total compensation amounted to CA$58.7 million and CA$10.3 million in fiscal 2020 and 2021, respectively.
The two-year total, CA$69.0 million, likely makes Cammarata the highest-paid cannabis-related CEO in North America – at least on paper.
Also, the two-year sum almost matches Neptune’s revenue of CA$76.4 million for the same period. The company lost CA$229 million in that time.
However, most of Cammarata’s CA$69 million in compensation during those two years, 88.6%, came in the form of share- and option-based awards, which are contingent on various parameters that aren’t being met right now, a Neptune spokesperson told MJBizDaily.
Michael Cammarata
For instance, Cammarata is eligible for a one-time cash award of $15 million (CA$18.5 million), which would be payable only once the company’s market capitalization reached $1 billion based on the 30-day average price of its Nasdaq-traded shares. As of Wednesday, the market cap stood at $87.6 million.
For fiscal 2020, most of Cammarata’s compensation came in the form of options, where he has the right to buy Neptune shares at a predetermined exercise price over a set period of time.
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