Appulse Corporation's (CVE:APL) CEO Looks Due For A Compensation Raise
The solid performance at Appulse Corporation (CVE:APL) has been impressive and shareholders will probably be pleased to know that CEO Doug Baird has delivered. At the upcoming AGM on 11 June 2021, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.
Check out our latest analysis for Appulse
Comparing Appulse Corporation's CEO Compensation With the industry
According to our data, Appulse Corporation has a market capitalization of CA$5.6m, and paid its CEO total annual compensation worth CA$175k over the year to December 2020. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at CA$132.6k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations under CA$242m, the reported median total CEO compensation was CA$297k. Accordingly, Appulse pays its CEO under the industry median. Moreover, Doug Baird also holds CA$259k worth of Appulse stock directly under their own name.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | CA$133k | CA$133k | 76% |
| Other | CA$42k | CA$37k | 24% |
| Total Compensation | CA$175k | CA$170k | 100% |
On an industry level, around 76% of total compensation represents salary and 24% is other remuneration. Our data reveals that Appulse allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Appulse Corporation's Growth Numbers
Over the past three years, Appulse Corporation has seen its earnings per share (EPS) grow by 185% per year. Its revenue is down 7.5% over the previous year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Appulse Corporation Been A Good Investment?
Boasting a total shareholder return of 74% over three years, Appulse Corporation has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
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. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
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 2 warning signs for Appulse that you should be aware of before investing.
Important note: Appulse 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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About TSXV:APL
Appulse
Through its subsidiaries, sells new and refurbished centrifuge machines and parts in Canada, the United States, and internationally.
Flawless balance sheet slight.
