As the cannabis industry continues to grow, more and more traders are listed on the stock exchange. But how much do cannabis CEOs make? MJBizDaily recently conducted a study to find out. The study found that ten CEOs surpassed the million-dollar mark in total compensation, although these amounts were lower than those of their Canadian counterparts and CEOs from major industries. This is due to the fact that compensation packages for cannabis companies can vary dramatically from year to year, depending on capital allocations.
For example, some companies give stock or option awards to their senior executives once every two years instead of annually. MJBizDaily also found that some companies disclosed capital allocations in separate sections of their executive compensation summary table, but did not include the contingent or estimated values of those awards. This is not customary in such reports. To calculate the contingent value of capital allocations, MJBizDaily used price information.
It's important to note that executive compensation is often irregular. While salary and bonuses may be simple, stock and option awards should not be given too much importance in any year due to their volatility. There are often “sudden changes from year to year” due to factors such as acquisition schedules, stock prices, the number of options exercised, and the length of time the executive remains. Cannabis companies also vary when it comes to compensation design, including stock acquisition schedules.
The higher compensation packages in US MSOs were more modest than in Canadian marijuana companies. Competitive demand for top talent is especially pronounced in emerging or potential adult markets, such as Arizona, Illinois, Michigan, New Jersey and New York. Wages are rising as the market becomes more competitive and higher salaries are needed to attract better talent. CannabizTeam recently conducted a survey which showed the average wage for a wide variety of jobs in the cannabis industry.
However, average salaries can vary greatly from one area to another as legalization expands. The fact that the average wage continues to rise underscores the industry's growing potential.