Stock Analysis

We Think Questor Technology Inc.'s (CVE:QST) CEO Compensation Package Needs To Be Put Under A Microscope

TSXV:QST
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Shareholders will probably not be too impressed with the underwhelming results at Questor Technology Inc. (CVE:QST) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 14 May 2021. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Questor Technology

How Does Total Compensation For Audrey Mascarenhas Compare With Other Companies In The Industry?

Our data indicates that Questor Technology Inc. has a market capitalization of CA$54m, and total annual CEO compensation was reported as CA$717k for the year to December 2020. That's a notable increase of 9.8% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$292k.

In comparison with other companies in the industry with market capitalizations under CA$244m, the reported median total CEO compensation was CA$610k. So it looks like Questor Technology compensates Audrey Mascarenhas in line with the median for the industry. Furthermore, Audrey Mascarenhas directly owns CA$8.6m worth of shares in the company, implying that they are deeply invested in the company's success.

Component20202019Proportion (2020)
Salary CA$292k CA$260k 41%
Other CA$425k CA$393k 59%
Total CompensationCA$717k CA$653k100%

Talking in terms of the industry, salary represented approximately 39% of total compensation out of all the companies we analyzed, while other remuneration made up 61% of the pie. Our data reveals that Questor Technology allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation
TSXV:QST CEO Compensation May 7th 2021

Questor Technology Inc.'s Growth

Over the last three years, Questor Technology Inc. has shrunk its earnings per share by 30% per year. It saw its revenue drop 69% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Questor Technology Inc. Been A Good Investment?

With a total shareholder return of -47% over three years, Questor Technology Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

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 Questor Technology that investors should think about before committing capital to this stock.

Switching gears from Questor Technology, 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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