Yahoo Finance Shareholders Will Probably Hold Off On Increasing IBEX Technologies Inc.'s (CVE:IBT) CEO Compensation For The Time Being
Performance at IBEX Technologies Inc. (CVE:IBT) has been reasonably good and CEO Paul Baehr has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 25 January 2023. However, some shareholders may still want to keep CEO compensation within reason.
See our latest analysis for IBEX Technologies
Comparing IBEX Technologies Inc.'s CEO Compensation With The Industry
According to our data, IBEX Technologies Inc. has a market capitalization of CA$21m, and paid its CEO total annual compensation worth CA$434k over the year to July 2022. That's a notable increase of 28% on last year. In particular, the salary of CA$269.6k, makes up a huge portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the Canadian Biotechs industry with market capitalizations below CA$270m, we found that the median total CEO compensation was CA$305k. Accordingly, our analysis reveals that IBEX Technologies Inc. pays Paul Baehr north of the industry median. Moreover, Paul Baehr also holds CA$2.0m worth of IBEX Technologies stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2022 | 2021 | Proportion (2022) |
Salary | CA$270k | CA$265k | 62% |
Other | CA$165k | CA$75k | 38% |
Total Compensation | CA$434k | CA$339k | 100% |
Talking in terms of the industry, salary represented approximately 69% of total compensation out of all the companies we analyzed, while other remuneration made up 31% of the pie. IBEX Technologies pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at IBEX Technologies Inc.'s Growth Numbers
Over the past three years, IBEX Technologies Inc. has seen its earnings per share (EPS) grow by 69% per year. Its revenue is up 33% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 IBEX Technologies Inc. Been A Good Investment?
Boasting a total shareholder return of 515% over three years, IBEX 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.
In Summary...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for IBEX Technologies that investors should look into moving forward.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
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