Here's Why Shareholders May Want To Be Cautious With Increasing Vitalhub Corp.'s (CVE:VHI) CEO Pay Packet

Under the guidance of CEO Dan Matlow, Vitalhub Corp. (CVE:VHI) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 05 July 2021. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Vitalhub

Comparing Vitalhub Corp.'s CEO Compensation With the industry

According to our data, Vitalhub Corp. has a market capitalization of CA$114m, and paid its CEO total annual compensation worth CA$519k over the year to December 2020. That's a notable increase of 32% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$240k.

On comparing similar-sized companies in the industry with market capitalizations below CA$247m, we found that the median total CEO compensation was CA$269k. Accordingly, our analysis reveals that Vitalhub Corp. pays Dan Matlow north of the industry median. Moreover, Dan Matlow also holds CA$562k worth of Vitalhub stock directly under their own name.

Component	2020	2019	Proportion (2020)
Salary	CA$240k	CA$240k	46%
Other	CA$279k	CA$152k	54%
Total Compensation	CA$519k	CA$392k	100%

On an industry level, roughly 88% of total compensation represents salary and 12% is other remuneration. Vitalhub pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Vitalhub Corp.'s Growth Numbers

Vitalhub Corp.'s earnings per share (EPS) grew 61% per year over the last three years. It achieved revenue growth of 55% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Vitalhub Corp. Been A Good Investment?

We think that the total shareholder return of 44%, over three years, would leave most Vitalhub Corp. shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Vitalhub that you should be aware of before investing.

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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