Yahoo Finance Shareholders May Not Be So Generous With C-Com Satellite Systems Inc.'s (CVE:CMI) CEO Compensation And Here's Why
Key Insights
C-Com Satellite Systems will host its Annual General Meeting on 8th of May
Total pay for CEO Leslie Klein includes CA$441.0k salary
The overall pay is comparable to the industry average
C-Com Satellite Systems' EPS grew by 12% over the past three years while total shareholder loss over the past three years was 59%
In the past three years, the share price of C-Com Satellite Systems Inc. (CVE:CMI) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 8th of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.
See our latest analysis for C-Com Satellite Systems
Comparing C-Com Satellite Systems Inc.'s CEO Compensation With The Industry
Our data indicates that C-Com Satellite Systems Inc. has a market capitalization of CA$53m, and total annual CEO compensation was reported as CA$687k for the year to November 2023. We note that's a decrease of 13% compared to last year. We note that the salary portion, which stands at CA$441.0k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the Canadian Communications industry with market capitalizations under CA$275m, the reported median total CEO compensation was CA$919k. So it looks like C-Com Satellite Systems compensates Leslie Klein in line with the median for the industry. What's more, Leslie Klein holds CA$20m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$441k | CA$420k | 64% |
Other | CA$246k | CA$372k | 36% |
Total Compensation | CA$687k | CA$792k | 100% |
On an industry level, roughly 32% of total compensation represents salary and 68% is other remuneration. C-Com Satellite Systems is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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 C-Com Satellite Systems Inc.'s Growth Numbers
Over the past three years, C-Com Satellite Systems Inc. has seen its earnings per share (EPS) grow by 12% per year. It achieved revenue growth of 9.7% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has C-Com Satellite Systems Inc. Been A Good Investment?
With a total shareholder return of -59% over three years, C-Com Satellite Systems Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. 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.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for C-Com Satellite Systems (2 shouldn't be ignored!) that you should be aware of before investing here.
Switching gears from C-Com Satellite Systems, 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.
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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.
