Adam Cegielski has been the CEO of Binovi Technologies Corp. (CVE:VISN) since 2012, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Comparing Binovi Technologies Corp.'s CEO Compensation With the industry
Our data indicates that Binovi Technologies Corp. has a market capitalization of CA$25m, and total annual CEO compensation was reported as CA$453k for the year to February 2020. Notably, that's an increase of 39% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$178k.
In comparison with other companies in the industry with market capitalizations under CA$258m, the reported median total CEO compensation was CA$263k. Hence, we can conclude that Adam Cegielski is remunerated higher than the industry median. Moreover, Adam Cegielski also holds CA$324k worth of Binovi Technologies stock directly under their own name.
On an industry level, around 75% of total compensation represents salary and 25% is other remuneration. Binovi Technologies sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Binovi Technologies Corp.'s Growth Numbers
Binovi Technologies Corp.'s earnings per share (EPS) grew 21% per year over the last three years. It saw its revenue drop 31% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Binovi Technologies Corp. Been A Good Investment?
With a three year total loss of 88% for the shareholders, Binovi Technologies Corp. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
As we noted earlier, Binovi Technologies pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, the EPS growth is certainly impressive, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Considering overall performance, we can't say Adam is underpaid, in fact compensation is definitely on the higher side.
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 5 warning signs for Binovi Technologies you should be aware of, and 3 of them are concerning.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
This article by Simply Wall St is general in nature. 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.
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