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What Does Siyata Mobile's (CVE:SIM) CEO Pay Reveal?

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Simply Wall St
·3 min read
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Marc Seelenfreund became the CEO of Siyata Mobile Inc. (CVE:SIM) in 2015, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Siyata Mobile

How Does Total Compensation For Marc Seelenfreund Compare With Other Companies In The Industry?

According to our data, Siyata Mobile Inc. has a market capitalization of CA$19m, and paid its CEO total annual compensation worth CA$551k over the year to December 2019. Notably, that's an increase of 15% over the year before. In particular, the salary of CA$400.6k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below CA$266m, reported a median total CEO compensation of CA$500k. So it looks like Siyata Mobile compensates Marc Seelenfreund in line with the median for the industry.

Component

2019

2018

Proportion (2019)

Salary

CA$401k

CA$389k

73%

Other

CA$150k

CA$92k

27%

Total Compensation

CA$551k

CA$481k

100%

Speaking on an industry level, nearly 61% of total compensation represents salary, while the remainder of 39% is other remuneration. It's interesting to note that Siyata Mobile pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
ceo-compensation

A Look at Siyata Mobile Inc.'s Growth Numbers

Over the last three years, Siyata Mobile Inc. has shrunk its earnings per share by 46% per year. In the last year, its revenue is down 8.1%.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Siyata Mobile Inc. Been A Good Investment?

Given the total shareholder loss of 94% over three years, many shareholders in Siyata Mobile Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we noted earlier, Siyata Mobile pays its CEO in line with similar-sized companies belonging to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.

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. That's why we did our research, and identified 4 warning signs for Siyata Mobile (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

Important note: Siyata Mobile is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.