It's Unlikely That Carebook Technologies Inc.'s (CVE:CRBK) CEO Will See A Huge Pay Rise This Year

Key Insights

• Carebook Technologies' Annual General Meeting to take place on 13th of June
• CEO Michael Peters' total compensation includes salary of CA$350.0k
• The total compensation is 58% higher than the average for the industry
• Carebook Technologies' EPS grew by 54% over the past three years while total shareholder loss over the past three years was 95%

Shareholders of Carebook Technologies Inc. (CVE:CRBK) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 13th of June. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Carebook Technologies

Comparing Carebook Technologies Inc.'s CEO Compensation With The Industry

Our data indicates that Carebook Technologies Inc. has a market capitalization of CA$5.7m, and total annual CEO compensation was reported as CA$420k for the year to December 2023. This was the same amount the CEO received in the prior year. We note that the salary portion, which stands at CA$350.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Canada Healthcare Services industry with market capitalizations below CA$274m, we found that the median total CEO compensation was CA$265k. This suggests that Michael Peters is paid more than the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	CA$350k	CA$350k	83%
Other	CA$70k	CA$70k	17%
Total Compensation	CA$420k	CA$420k	100%

Talking in terms of the industry, salary represented approximately 71% of total compensation out of all the companies we analyzed, while other remuneration made up 29% of the pie. It's interesting to note that Carebook Technologies pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Carebook Technologies Inc.'s Growth

Over the past three years, Carebook Technologies Inc. has seen its earnings per share (EPS) grow by 54% per year. In the last year, its revenue is up 42%.

Shareholders would be glad to know that the company has improved itself over the last few years. 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 Carebook Technologies Inc. Been A Good Investment?

With a total shareholder return of -95% over three years, Carebook Technologies Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

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. We've identified 4 warning signs for Carebook Technologies that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.