Yahoo Finance What We Learned About AirIQ's (CVE:IQ) CEO Pay
Mike Robb has been the CEO of AirIQ Inc. (CVE:IQ) since 2014, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
View our latest analysis for AirIQ
Comparing AirIQ Inc.'s CEO Compensation With the industry
According to our data, AirIQ Inc. has a market capitalization of CA$11m, and paid its CEO total annual compensation worth CA$189k over the year to March 2020. Notably, that's an increase of 23% over the year before. In particular, the salary of CA$126.5k, 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$254m, reported a median total CEO compensation of CA$189k. So it looks like AirIQ compensates Mike Robb in line with the median for the industry. What's more, Mike Robb holds CA$290k worth of shares in the company in their own name.
Component | 2020 | 2019 | Proportion (2020) |
Salary | CA$127k | CA$127k | 67% |
Other | CA$62k | CA$27k | 33% |
Total Compensation | CA$189k | CA$154k | 100% |
Speaking on an industry level, nearly 74% of total compensation represents salary, while the remainder of 26% is other remuneration. AirIQ is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
AirIQ Inc.'s Growth
AirIQ Inc. has seen its earnings per share (EPS) increase by 35% a year over the past three years. Its revenue is down 27% over the previous year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 AirIQ Inc. Been A Good Investment?
Boasting a total shareholder return of 109% over three years, AirIQ Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
As we touched on above, AirIQ Inc. is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Investors would surely be happy to see that returns have been great, and that EPS is up. So one could argue that CEO compensation is quite modest, if you consider company performance! Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for AirIQ (2 make us uncomfortable!) that you should be aware of before investing here.
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.
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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