Yahoo Finance Most Shareholders Will Probably Find That The CEO Compensation For Cobra Venture Corporation (CVE:CBV) Is Reasonable
Under the guidance of CEO Dan Evans, Cobra Venture Corporation (CVE:CBV) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 13 May 2021. Here is our take on why we think the CEO compensation looks appropriate.
Check out our latest analysis for Cobra Venture
Comparing Cobra Venture Corporation's CEO Compensation With the industry
Our data indicates that Cobra Venture Corporation has a market capitalization of CA$2.1m, and total annual CEO compensation was reported as CA$224k for the year to November 2020. This was the same as last year. In particular, the salary of CA$220.0k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the industry with market capitalizations below CA$244m, we found that the median total CEO compensation was CA$250k. So it looks like Cobra Venture compensates Dan Evans in line with the median for the industry. What's more, Dan Evans holds CA$124k worth of shares in the company in their own name.
Component | 2020 | 2019 | Proportion (2020) |
Salary | CA$220k | CA$220k | 98% |
Other | CA$4.0k | CA$4.0k | 2% |
Total Compensation | CA$224k | CA$224k | 100% |
Speaking on an industry level, nearly 51% of total compensation represents salary, while the remainder of 49% is other remuneration. Investors will find it interesting that Cobra Venture pays the bulk of its rewards through a traditional salary, instead of 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 Cobra Venture Corporation's Growth Numbers
Cobra Venture Corporation has seen its earnings per share (EPS) increase by 42% a year over the past three years. Its revenue is down 32% over the previous year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Cobra Venture Corporation Been A Good Investment?
With a total shareholder return of 23% over three years, Cobra Venture Corporation shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Dan receives almost all of their compensation through a salary. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Cobra Venture that you should be aware of before investing.
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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