We Think Shareholders Are Less Likely To Approve A Pay Rise For CardioComm Solutions, Inc.'s (CVE:EKG) CEO For Now
Key Insights
CardioComm Solutions to hold its Annual General Meeting on 13th of December
Total pay for CEO Etienne Grima includes CA$180.0k salary
The total compensation is similar to the average for the industry
CardioComm Solutions' three-year loss to shareholders was 60% while its EPS grew by 80% over the past three years
Shareholders of CardioComm Solutions, Inc. (CVE:EKG) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 13th of December. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
View our latest analysis for CardioComm Solutions
How Does Total Compensation For Etienne Grima Compare With Other Companies In The Industry?
Our data indicates that CardioComm Solutions, Inc. has a market capitalization of CA$1.5m, and total annual CEO compensation was reported as CA$186k for the year to December 2022. We note that's an increase of 81% above last year. We note that the salary portion, which stands at CA$180.0k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the Canada Healthcare Services industry with market capitalizations below CA$272m, reported a median total CEO compensation of CA$257k. So it looks like CardioComm Solutions compensates Etienne Grima in line with the median for the industry. Furthermore, Etienne Grima directly owns CA$109k worth of shares in the company.
Component | 2022 | 2021 | Proportion (2022) |
Salary | CA$180k | CA$89k | 97% |
Other | CA$6.0k | CA$14k | 3% |
Total Compensation | CA$186k | CA$103k | 100% |
Talking in terms of the industry, salary represented approximately 67% of total compensation out of all the companies we analyzed, while other remuneration made up 33% of the pie. CardioComm Solutions has gone down a largely traditional route, paying Etienne Grima a high salary, giving it preference over non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at CardioComm Solutions, Inc.'s Growth Numbers
Over the past three years, CardioComm Solutions, Inc. has seen its earnings per share (EPS) grow by 80% per year. Its revenue is down 8.6% over the previous year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has CardioComm Solutions, Inc. Been A Good Investment?
With a total shareholder return of -60% over three years, CardioComm Solutions, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
CardioComm Solutions pays its CEO a majority of compensation through a salary. Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 5 warning signs for CardioComm Solutions that investors should think about before committing capital to this stock.
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.
