Yahoo Finance It Looks Like Shareholders Would Probably Approve BQE Water Inc.'s (CVE:BQE) CEO Compensation Package
Key Insights
BQE Water's Annual General Meeting to take place on 25th of June
CEO David Kratochvil's total compensation includes salary of CA$330.2k
The total compensation is similar to the average for the industry
Over the past three years, BQE Water's EPS grew by 54% and over the past three years, the total shareholder return was 79%
We have been pretty impressed with the performance at BQE Water Inc. (CVE:BQE) recently and CEO David Kratochvil deserves a mention for their role in it. Coming up to the next AGM on 25th of June, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.
See our latest analysis for BQE Water
Comparing BQE Water Inc.'s CEO Compensation With The Industry
Our data indicates that BQE Water Inc. has a market capitalization of CA$76m, and total annual CEO compensation was reported as CA$382k for the year to December 2023. Notably, that's an increase of 12% over the year before. Notably, the salary which is CA$330.2k, represents most of the total compensation being paid.
On comparing similar-sized companies in the Canadian Commercial Services industry with market capitalizations below CA$274m, we found that the median total CEO compensation was CA$442k. From this we gather that David Kratochvil is paid around the median for CEOs in the industry. Furthermore, David Kratochvil directly owns CA$1.4m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$330k | CA$310k | 87% |
Other | CA$51k | CA$29k | 13% |
Total Compensation | CA$382k | CA$339k | 100% |
On an industry level, around 36% of total compensation represents salary and 64% is other remuneration. BQE Water pays out 87% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at BQE Water Inc.'s Growth Numbers
Over the past three years, BQE Water Inc. has seen its earnings per share (EPS) grow by 54% per year. It achieved revenue growth of 45% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has BQE Water Inc. Been A Good Investment?
We think that the total shareholder return of 79%, over three years, would leave most BQE Water Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for BQE Water that you should be aware of before investing.
Important note: BQE Water 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
