This Is Why Goldmoney Inc.'s (TSE:XAU) CEO Can Expect A Bump Up In Their Pay Packet

Shareholders will probably not be disappointed by the robust results at Goldmoney Inc. (TSE:XAU) recently and they will be keeping this in mind as they go into the AGM on 13 September 2021. This would also be a chance for them to hear the board review the financial results, discuss future company strategy to further improve the business and vote on any 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.

View our latest analysis for Goldmoney

How Does Total Compensation For Roy Sebag Compare With Other Companies In The Industry?

At the time of writing, our data shows that Goldmoney Inc. has a market capitalization of CA$209m, and reported total annual CEO compensation of CA$460k for the year to March 2021. That's a notable decrease of 31% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$57k.

In comparison with other companies in the industry with market capitalizations ranging from CA$125m to CA$502m, the reported median CEO total compensation was CA$1.3m. Accordingly, Goldmoney pays its CEO under the industry median. Furthermore, Roy Sebag directly owns CA$45m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	CA$57k	CA$1.0	12%
Other	CA$403k	CA$663k	88%
Total Compensation	CA$460k	CA$663k	100%

Speaking on an industry level, nearly 19% of total compensation represents salary, while the remainder of 81% is other remuneration. In Goldmoney's case, non-salary compensation represents a greater slice of total remuneration, 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.

Goldmoney Inc.'s Growth

Over the past three years, Goldmoney Inc. has seen its earnings per share (EPS) grow by 32% per year. The trailing twelve months of revenue was pretty much the same as the prior period.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Goldmoney Inc. Been A Good Investment?

Goldmoney Inc. has generated a total shareholder return of 9.9% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

To Conclude...

While the company seems to be headed in the right direction performance-wise, there's always room for improvement. 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. 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Goldmoney that investors should be aware of in a dynamic business environment.

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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