Yahoo Finance It Looks Like Shareholders Would Probably Approve Reliq Health Technologies Inc.'s (CVE:RHT) CEO Compensation Package
The performance at Reliq Health Technologies Inc. (CVE:RHT) has been quite strong recently and CEO Lisa Crossley has played a role in it. Coming up to the next AGM on 21 December 2021, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
See our latest analysis for Reliq Health Technologies
How Does Total Compensation For Lisa Crossley Compare With Other Companies In The Industry?
At the time of writing, our data shows that Reliq Health Technologies Inc. has a market capitalization of CA$192m, and reported total annual CEO compensation of CA$257k for the year to June 2021. That's a notable increase of 12% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth CA$257k.
In comparison with other companies in the industry with market capitalizations under CA$257m, the reported median total CEO compensation was CA$211k. This suggests that Reliq Health Technologies remunerates its CEO largely in line with the industry average. Moreover, Lisa Crossley also holds CA$2.7m worth of Reliq Health Technologies stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2021 | 2020 | Proportion (2021) |
Salary | CA$257k | CA$229k | 100% |
Other | - | - | - |
Total Compensation | CA$257k | CA$229k | 100% |
Talking in terms of the industry, salary represented approximately 88% of total compensation out of all the companies we analyzed, while other remuneration made up 12% of the pie. On a company level, Reliq Health Technologies prefers to reward its CEO through a salary, opting not to pay Lisa Crossley through non-salary benefits. 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.
Reliq Health Technologies Inc.'s Growth
Reliq Health Technologies Inc.'s earnings per share (EPS) grew 27% per year over the last three years. It achieved revenue growth of 168% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Reliq Health Technologies Inc. Been A Good Investment?
Boasting a total shareholder return of 329% over three years, Reliq Health Technologies Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Reliq Health Technologies pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 5 warning signs for Reliq Health Technologies (of which 2 don't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from Reliq Health Technologies, 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.
