Advertisement
Canada markets closed
  • S&P/TSX

    21,807.37
    +98.93 (+0.46%)
     
  • S&P 500

    4,967.23
    -43.89 (-0.88%)
     
  • DOW

    37,986.40
    +211.02 (+0.56%)
     
  • CAD/USD

    0.7275
    +0.0012 (+0.16%)
     
  • CRUDE OIL

    83.24
    +0.51 (+0.62%)
     
  • Bitcoin CAD

    87,723.09
    +578.86 (+0.66%)
     
  • CMC Crypto 200

    1,376.93
    +64.31 (+4.90%)
     
  • GOLD FUTURES

    2,406.70
    +8.70 (+0.36%)
     
  • RUSSELL 2000

    1,947.66
    +4.70 (+0.24%)
     
  • 10-Yr Bond

    4.6150
    -0.0320 (-0.69%)
     
  • NASDAQ

    15,282.01
    -319.49 (-2.05%)
     
  • VOLATILITY

    18.71
    +0.71 (+3.94%)
     
  • FTSE

    7,895.85
    +18.80 (+0.24%)
     
  • NIKKEI 225

    37,068.35
    -1,011.35 (-2.66%)
     
  • CAD/EUR

    0.6824
    +0.0003 (+0.04%)
     

It's Unlikely That Imperial Equities Inc.'s (CVE:IEI) CEO Will See A Huge Pay Rise This Year

CEO Sine Chadi has done a decent job of delivering relatively good performance at Imperial Equities Inc. (CVE:IEI) recently. As shareholders go into the upcoming AGM on 16 March 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Imperial Equities

How Does Total Compensation For Sine Chadi Compare With Other Companies In The Industry?

At the time of writing, our data shows that Imperial Equities Inc. has a market capitalization of CA$44m, and reported total annual CEO compensation of CA$300k for the year to September 2021. This was the same amount the CEO received in the prior year. Notably, the salary of CA$300k is the entirety of the CEO compensation.

ADVERTISEMENT

On comparing similar-sized companies in the industry with market capitalizations below CA$258m, we found that the median total CEO compensation was CA$220k. Hence, we can conclude that Sine Chadi is remunerated higher than the industry median. What's more, Sine Chadi holds CA$13m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component

2021

2020

Proportion (2021)

Salary

CA$300k

CA$300k

100%

Other

-

-

-

Total Compensation

CA$300k

CA$300k

100%

Speaking on an industry level, nearly 65% of total compensation represents salary, while the remainder of 35% is other remuneration. Speaking on a company level, Imperial Equities prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
ceo-compensation

Imperial Equities Inc.'s Growth

Imperial Equities Inc. has seen its earnings per share (EPS) increase by 112% a year over the past three years. Its revenue is up 14% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Imperial Equities Inc. Been A Good Investment?

Imperial Equities Inc. has served shareholders reasonably well, with a total return of 29% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

Imperial Equities pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. 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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 3 warning signs for Imperial Equities you should be aware of, and 1 of them is significant.

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.

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

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.