Yahoo Finance This Is Why TrustBIX Inc.'s (CVE:TBIX) CEO Compensation Looks Appropriate
Key Insights
TrustBIX to hold its Annual General Meeting on 18th of April
Salary of CA$200.0k is part of CEO Hubert Lau's total remuneration
The overall pay is 43% below the industry average
TrustBIX's EPS grew by 12% over the past three years while total shareholder loss over the past three years was 99%
Performance at TrustBIX Inc. (CVE:TBIX) has been rather uninspiring recently and shareholders may be wondering how CEO Hubert Lau plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 18th of April. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We have prepared some analysis below to show that CEO compensation looks to be reasonable.
View our latest analysis for TrustBIX
Comparing TrustBIX Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that TrustBIX Inc. has a market capitalization of CA$697k, and reported total annual CEO compensation of CA$200k for the year to September 2023. That's a notable increase of 18% on last year. Notably, the salary of CA$200k is the entirety of the CEO compensation.
In comparison with other companies in the Canadian Software industry with market capitalizations under CA$274m, the reported median total CEO compensation was CA$348k. In other words, TrustBIX pays its CEO lower than the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | CA$200k | CA$169k | 100% |
Other | - | - | - |
Total Compensation | CA$200k | CA$169k | 100% |
Speaking on an industry level, nearly 70% of total compensation represents salary, while the remainder of 30% is other remuneration. On a company level, TrustBIX prefers to reward its CEO through a salary, opting not to pay Hubert Lau through non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
TrustBIX Inc.'s Growth
TrustBIX Inc. has seen its earnings per share (EPS) increase by 12% a year over the past three years. In the last year, its revenue is up 20%.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has TrustBIX Inc. Been A Good Investment?
Few TrustBIX Inc. shareholders would feel satisfied with the return of -99% over three years. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
TrustBIX rewards its CEO solely through a salary, ignoring non-salary benefits completely. The fact that shareholders are sitting on a loss is certainly disheartening. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. A key question may be why the fundamentals have not yet been reflected into the share price. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 6 warning signs for TrustBIX (of which 4 are potentially serious!) that you should know about in order to have a holistic understanding of the stock.
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.
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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.
