This Is Why We Think Findev Inc.'s (CVE:FDI) CEO Might Get A Pay Rise Approved By Shareholders

The decent performance at Findev Inc. (CVE:FDI) recently will please most shareholders as they go into the AGM coming up on 30 June 2021. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. In our analysis below, we discuss why we think the CEO compensation looks acceptable and the case for a raise.

See our latest analysis for Findev

How Does Total Compensation For Sruli Weinreb Compare With Other Companies In The Industry?

Our data indicates that Findev Inc. has a market capitalization of CA$15m, and total annual CEO compensation was reported as CA$91k for the year to December 2020. That's mostly flat as compared to the prior year's compensation. In particular, the salary of CA$90.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below CA$246m, reported a median total CEO compensation of CA$630k. Accordingly, Findev pays its CEO under the industry median.

Component	2020	2019	Proportion (2020)
Salary	CA$90k	CA$90k	99%
Other	CA$500	-	1%
Total Compensation	CA$91k	CA$90k	100%

Talking in terms of the industry, salary represented approximately 34% of total compensation out of all the companies we analyzed, while other remuneration made up 66% of the pie. Findev pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Findev Inc.'s Growth Numbers

Findev Inc. has seen its earnings per share (EPS) increase by 19% a year over the past three years. It achieved revenue growth of 16% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Findev Inc. Been A Good Investment?

Findev Inc. has served shareholders reasonably well, with a total return of 17% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Sruli receives almost all of their compensation through a salary. The company's overall performance, while not bad, could be better. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Findev that you should be aware of before investing.

Important note: Findev 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. 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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