It's Unlikely That H2O Innovation Inc.'s (CVE:HEO) CEO Will See A Huge Pay Rise This Year

Under the guidance of CEO Frederic Dugre, H2O Innovation Inc. (CVE:HEO) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 09 December 2021. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for H2O Innovation

How Does Total Compensation For Frederic Dugre Compare With Other Companies In The Industry?

At the time of writing, our data shows that H2O Innovation Inc. has a market capitalization of CA$223m, and reported total annual CEO compensation of CA$1.2m for the year to June 2021. Notably, that's an increase of 99% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$330k.

On examining similar-sized companies in the industry with market capitalizations between CA$128m and CA$510m, we discovered that the median CEO total compensation of that group was CA$416k. This suggests that Frederic Dugre is paid more than the median for the industry. What's more, Frederic Dugre holds CA$1.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2021	2020	Proportion (2021)
Salary	CA$330k	CA$330k	28%
Other	CA$836k	CA$255k	72%
Total Compensation	CA$1.2m	CA$585k	100%

On an industry level, around 74% of total compensation represents salary and 26% is other remuneration. It's interesting to note that H2O Innovation allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

H2O Innovation Inc.'s Growth

H2O Innovation Inc. has seen its earnings per share (EPS) increase by 71% a year over the past three years. In the last year, its revenue is up 5.2%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 H2O Innovation Inc. Been A Good Investment?

We think that the total shareholder return of 130%, over three years, would leave most H2O Innovation Inc. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

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 1 warning sign for H2O Innovation that investors should think about before committing capital to this stock.

Switching gears from H2O Innovation, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.