Yahoo Finance Should Shareholders Worry About CryptoStar Corp.'s (CVE:CSTR) CEO Compensation Package?
Key Insights
CryptoStar will host its Annual General Meeting on 25th of July
Total pay for CEO David Jellins includes US$158.8k salary
Total compensation is 65% below industry average
Over the past three years, CryptoStar's EPS fell by 1.0% and over the past three years, the total loss to shareholders 76%
The disappointing performance at CryptoStar Corp. (CVE:CSTR) will make some shareholders rather disheartened. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 25th of July. We think most shareholders will probably pass the CEO compensation, based on what we gathered.
View our latest analysis for CryptoStar
Comparing CryptoStar Corp.'s CEO Compensation With The Industry
According to our data, CryptoStar Corp. has a market capitalization of CA$13m, and paid its CEO total annual compensation worth US$159k over the year to December 2023. That's slightly lower by 3.2% over the previous year. Notably, the salary of US$159k is the entirety of the CEO compensation.
For comparison, other companies in the Canada IT industry with market capitalizations below CA$274m, reported a median total CEO compensation of US$457k. This suggests that David Jellins is paid below the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$159k | US$164k | 100% |
Other | - | - | - |
Total Compensation | US$159k | US$164k | 100% |
Speaking on an industry level, nearly 60% of total compensation represents salary, while the remainder of 40% is other remuneration. At the company level, CryptoStar pays David Jellins solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at CryptoStar Corp.'s Growth Numbers
Over the last three years, CryptoStar Corp. has shrunk its earnings per share by 1.0% per year. In the last year, its revenue is down 27%.
Its a bit disappointing to see that the company has failed to grow its EPS. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 CryptoStar Corp. Been A Good Investment?
The return of -76% over three years would not have pleased CryptoStar Corp. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
CryptoStar pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 4 warning signs (and 2 which are a bit concerning) in CryptoStar we think you should know about.
Important note: CryptoStar is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
