How Should Investors Feel About TrackX Holdings' (CVE:TKX) CEO Remuneration?
Tim Harvie has been the CEO of TrackX Holdings Inc. (CVE:TKX) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for TrackX Holdings.
Check out our latest analysis for TrackX Holdings
Comparing TrackX Holdings Inc.'s CEO Compensation With the industry
At the time of writing, our data shows that TrackX Holdings Inc. has a market capitalization of CA$4.1m, and reported total annual CEO compensation of CA$268k for the year to September 2019. We note that's an increase of 9.5% above last year. In particular, the salary of CA$254.2k, 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$264m, reported a median total CEO compensation of CA$216k. So it looks like TrackX Holdings compensates Tim Harvie in line with the median for the industry.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$254k | CA$231k | 95% |
Other | CA$14k | CA$13k | 5% |
Total Compensation | CA$268k | CA$245k | 100% |
Talking in terms of the industry, salary represented approximately 81% of total compensation out of all the companies we analyzed, while other remuneration made up 19% of the pie. TrackX Holdings pays out 95% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at TrackX Holdings Inc.'s Growth Numbers
TrackX Holdings Inc.'s earnings per share (EPS) grew 29% per year over the last three years. Its revenue is down 29% over the previous year.
Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has TrackX Holdings Inc. Been A Good Investment?
With a three year total loss of 83% for the shareholders, TrackX Holdings Inc. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
As we noted earlier, TrackX Holdings pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, shareholder returns paint a sorry picture for the company, finishing in the red over the last three years. However, EPS growth is positive over the same time frame. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 6 warning signs for TrackX Holdings you should be aware of, and 2 of them shouldn't be ignored.
Switching gears from TrackX Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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