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Martello Technologies Group Inc.'s (CVE:MTLO) CEO Will Probably Find It Hard To See A Huge Raise This Year

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The underwhelming share price performance of Martello Technologies Group Inc. (CVE:MTLO) in the past three years would have disappointed many shareholders. Per share earnings growth is also poor, despite revenues growing. The AGM coming up on 21 September 2021 will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

Check out our latest analysis for Martello Technologies Group

How Does Total Compensation For John Proctor Compare With Other Companies In The Industry?

At the time of writing, our data shows that Martello Technologies Group Inc. has a market capitalization of CA$36m, and reported total annual CEO compensation of CA$293k for the year to March 2021. That's a notable decrease of 26% on last year. Notably, the salary which is CA$253.5k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under CA$253m, the reported median total CEO compensation was CA$256k. So it looks like Martello Technologies Group compensates John Proctor in line with the median for the industry.

Component

2021

2020

Proportion (2021)

Salary

CA$254k

CA$248k

87%

Other

CA$39k

CA$149k

13%

Total Compensation

CA$293k

CA$397k

100%

Speaking on an industry level, nearly 80% of total compensation represents salary, while the remainder of 20% is other remuneration. Martello Technologies Group is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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.

ceo-compensation
ceo-compensation

A Look at Martello Technologies Group Inc.'s Growth Numbers

Martello Technologies Group Inc. has reduced its earnings per share by 5.4% a year over the last three years. Its revenue is up 52% over the last year.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Martello Technologies Group Inc. Been A Good Investment?

With a total shareholder return of -83% over three years, Martello Technologies Group Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is 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 4 warning signs for Martello Technologies Group that you should be aware of before investing.

Switching gears from Martello Technologies Group, 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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