Most Shareholders Will Probably Agree With Scryb Inc.'s (CSE:SCYB) CEO Compensation

Key Insights

• Scryb's Annual General Meeting to take place on 3rd of March
• Salary of CA$156.0k is part of CEO Yoav Raiter's total remuneration
• The total compensation is 44% less than the average for the industry
• Scryb's EPS grew by 7.3% over the past three years while total shareholder loss over the past three years was 50%

Performance at Scryb Inc. (CSE:SCYB) has been rather uninspiring recently and shareholders may be wondering how CEO Yoav Raiter plans to fix this. At the next AGM coming up on 3rd of March, they can influence managerial decision making through voting on resolutions, including executive remuneration. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. In our opinion, CEO compensation does not look excessive and we discuss why.

See our latest analysis for Scryb

How Does Total Compensation For Yoav Raiter Compare With Other Companies In The Industry?

According to our data, Scryb Inc. has a market capitalization of CA$28m, and paid its CEO total annual compensation worth CA$176k over the year to September 2022. We note that's a small decrease of 7.5% on last year. Notably, the salary which is CA$156.0k, represents most of the total compensation being paid.

In comparison with other companies in the Canadian Medical Equipment industry with market capitalizations under CA$272m, the reported median total CEO compensation was CA$316k. Accordingly, Scryb pays its CEO under the industry median.

Component	2022	2021	Proportion (2022)
Salary	CA$156k	CA$160k	89%
Other	CA$20k	CA$30k	11%
Total Compensation	CA$176k	CA$190k	100%

On an industry level, roughly 70% of total compensation represents salary and 30% is other remuneration. According to our research, Scryb has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Scryb Inc.'s Growth

Scryb Inc.'s earnings per share (EPS) grew 7.3% per year over the last three years. Its revenue is down 42% over the previous year.

We generally like to see a little revenue growth, but the modest EPS growth gives us some relief. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Scryb Inc. Been A Good Investment?

With a total shareholder return of -50% over three years, Scryb Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders have earned a negative share price return is certainly disconcerting. The lacklustre earnings growth perhaps may have something to do with the downward trend in the share price. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 6 warning signs for Scryb (3 don't sit too well with us!) that you should be aware of before investing here.

Switching gears from Scryb, 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.