Adam Cegielski became the CEO of Binovi Technologies Corp. (CVE:VISN) in 2012, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
View our latest analysis for Binovi Technologies
Comparing Binovi Technologies Corp.'s CEO Compensation With the industry
Our data indicates that Binovi Technologies Corp. has a market capitalization of CA$26m, and total annual CEO compensation was reported as CA$453k for the year to February 2020. That's a notable increase of 39% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$178k.
In comparison with other companies in the industry with market capitalizations under CA$261m, the reported median total CEO compensation was CA$263k. Accordingly, our analysis reveals that Binovi Technologies Corp. pays Adam Cegielski north of the industry median.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | CA$178k | CA$201k | 39% |
| Other | CA$275k | CA$125k | 61% |
| Total Compensation | CA$453k | CA$326k | 100% |
On an industry level, around 75% of total compensation represents salary and 25% is other remuneration. Binovi Technologies sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Binovi Technologies Corp.'s Growth Numbers
Binovi Technologies Corp. has seen its earnings per share (EPS) increase by 21% a year over the past three years. Its revenue is down 31% over the previous year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Binovi Technologies Corp. Been A Good Investment?
Given the total shareholder loss of 88% over three years, many shareholders in Binovi Technologies Corp. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
To Conclude...
As previously discussed, Adam is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, we must not forget that the EPS growth has been very strong, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Considering overall performance, we can't say Adam is underpaid, in fact compensation is definitely on the higher side.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 5 warning signs for Binovi Technologies (of which 3 are a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.
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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About TSXV:VISN.H
Binovi Technologies
Engages in the development, manufacturing, and commercialization of visual and neuro-cognitive processing products, and hardware and software for diagnosing and remediating visual perception disorders in Canada, the United States, and internationally.
Low with weak fundamentals.
