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How Should Investors React To Intermap Technologies Corporation's (TSE:IMP) CEO Pay?

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Simply Wall St
·3 min read
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In 2016, Patrick Blott was appointed CEO of Intermap Technologies Corporation (TSE:IMP). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Intermap Technologies

How Does Patrick Blott's Compensation Compare With Similar Sized Companies?

According to our data, Intermap Technologies Corporation has a market capitalization of CA$2.8m, and paid its CEO total annual compensation worth US$761k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$450k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$156k.

Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Intermap Technologies. On a sector level, around 81% of total compensation represents salary and 19% is other remuneration. Intermap Technologies does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.

As you can see, Patrick Blott is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Intermap Technologies Corporation is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. You can see a visual representation of the CEO compensation at Intermap Technologies, below.

TSX:IMP CEO Compensation May 15th 2020
TSX:IMP CEO Compensation May 15th 2020

Is Intermap Technologies Corporation Growing?

Intermap Technologies Corporation has seen earnings per share (EPS) move positively by an average of 79% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 36%.

This demonstrates that the company has been improving recently. A good result. 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 Intermap Technologies Corporation Been A Good Investment?

Given the total loss of 79% over three years, many shareholders in Intermap Technologies Corporation are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared the total CEO remuneration paid by Intermap Technologies Corporation, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. On another note, Intermap Technologies has 4 warning signs (and 2 which are potentially serious) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.