Shareholders May Be Wary Of Increasing Real Matters Inc.'s (TSE:REAL) CEO Compensation Package
Key Insights
Real Matters to hold its Annual General Meeting on 8th of February
CEO Brian Lang's total compensation includes salary of US$463.8k
The total compensation is similar to the average for the industry
Over the past three years, Real Matters' EPS fell by 101% and over the past three years, the total loss to shareholders 64%
Shareholders will probably not be too impressed with the underwhelming results at Real Matters Inc. (TSE:REAL) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 8th of February. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.
Check out our latest analysis for Real Matters
Comparing Real Matters Inc.'s CEO Compensation With The Industry
Our data indicates that Real Matters Inc. has a market capitalization of CA$475m, and total annual CEO compensation was reported as US$726k for the year to September 2023. That's a fairly small increase of 3.4% over the previous year. Notably, the salary which is US$463.8k, represents most of the total compensation being paid.
On comparing similar companies from the Canadian Real Estate industry with market caps ranging from CA$268m to CA$1.1b, we found that the median CEO total compensation was US$710k. From this we gather that Brian Lang is paid around the median for CEOs in the industry.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$464k | US$456k | 64% |
Other | US$262k | US$246k | 36% |
Total Compensation | US$726k | US$702k | 100% |
On an industry level, around 57% of total compensation represents salary and 43% is other remuneration. Real Matters pays out 64% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Real Matters Inc.'s Growth Numbers
Real Matters Inc. has reduced its earnings per share by 101% a year over the last three years. Its revenue is down 40% over the previous year.
Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Real Matters Inc. Been A Good Investment?
Few Real Matters Inc. shareholders would feel satisfied with the return of -64% over three years. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
Shareholders may want to check for free if Real Matters insiders are buying or selling shares.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
