Most Shareholders Will Probably Agree With Eguana Technologies Inc.'s (CVE:EGT) CEO Compensation

Performance at Eguana Technologies Inc. (CVE:EGT) has been rather uninspiring recently and shareholders may be wondering how CEO Justin Holland plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 16 September 2021. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for Eguana Technologies

Comparing Eguana Technologies Inc.'s CEO Compensation With the industry

According to our data, Eguana Technologies Inc. has a market capitalization of CA$101m, and paid its CEO total annual compensation worth CA$278k over the year to September 2020. This was the same amount the CEO received in the prior year. Notably, the salary of CA$278k is the entirety of the CEO compensation.

In comparison with other companies in the industry with market capitalizations under CA$253m, the reported median total CEO compensation was CA$601k. This suggests that Justin Holland is paid below the industry median. What's more, Justin Holland holds CA$1.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	CA$278k	CA$278k	100%
Other	-	-	-
Total Compensation	CA$278k	CA$278k	100%

On an industry level, around 91% of total compensation represents salary and 9% is other remuneration. On a company level, Eguana Technologies prefers to reward its CEO through a salary, opting not to pay Justin Holland through non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Eguana Technologies Inc.'s Growth Numbers

Eguana Technologies Inc. has reduced its earnings per share by 17% a year over the last three years. It saw its revenue drop 28% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Eguana Technologies Inc. Been A Good Investment?

We think that the total shareholder return of 38%, over three years, would leave most Eguana Technologies Inc. shareholders smiling. 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...

Eguana Technologies rewards its CEO solely through a salary, ignoring non-salary benefits completely. Despite the strong returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. These concerns could be addressed to the board and shareholders should revisit their investment thesis to see if it still makes sense.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 6 warning signs for Eguana Technologies you should be aware of, and 2 of them make us uncomfortable.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.
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