We Discuss Whether Inventronics Limited's (CVE:IVX) CEO Is Due For A Pay Rise

The impressive results at Inventronics Limited (CVE:IVX) recently will be great news for shareholders. This would be kept in mind at the upcoming AGM on 09 November 2022 which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

See our latest analysis for Inventronics

Comparing Inventronics Limited's CEO Compensation With The Industry

Our data indicates that Inventronics Limited has a market capitalization of CA$15m, and total annual CEO compensation was reported as CA$183k for the year to December 2021. Notably, that's an increase of 40% over the year before. We note that the salary portion, which stands at CA$174.3k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under CA$273m, the reported median total CEO compensation was CA$679k. This suggests that Dan Stearne is paid below the industry median. Furthermore, Dan Stearne directly owns CA$2.8m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	CA$174k	CA$122k	95%
Other	CA$9.0k	CA$9.0k	5%
Total Compensation	CA$183k	CA$131k	100%

Talking in terms of the industry, salary represented approximately 14% of total compensation out of all the companies we analyzed, while other remuneration made up 86% of the pie. Inventronics 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.

Inventronics Limited's Growth

Over the past three years, Inventronics Limited has seen its earnings per share (EPS) grow by 54% per year. It achieved revenue growth of 50% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Inventronics Limited Been A Good Investment?

Most shareholders would probably be pleased with Inventronics Limited for providing a total return of 1,815% over three years. 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.

In Summary...

Inventronics pays its CEO a majority of compensation through a salary. 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. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for Inventronics you should be aware of, and 1 of them makes us a bit 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.