It's Unlikely That The CEO Of EcoSynthetix Inc. (TSE:ECO) Will See A Huge Pay Rise This Year

Key Insights

• EcoSynthetix to hold its Annual General Meeting on 22nd of May
• CEO Jeff MacDonald's total compensation includes salary of US$343.8k
• Total compensation is similar to the industry average
• EcoSynthetix's EPS grew by 22% over the past three years while total shareholder loss over the past three years was 24%

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Shareholders of EcoSynthetix Inc. (TSE:ECO) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 22nd of May. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for EcoSynthetix

Comparing EcoSynthetix Inc.'s CEO Compensation With The Industry

Our data indicates that EcoSynthetix Inc. has a market capitalization of CA$233m, and total annual CEO compensation was reported as US$917k for the year to December 2024. That's a notable increase of 18% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$344k.

In comparison with other companies in the Canadian Chemicals industry with market capitalizations ranging from CA$140m to CA$558m, the reported median CEO total compensation was US$917k. This suggests that EcoSynthetix remunerates its CEO largely in line with the industry average. What's more, Jeff MacDonald holds CA$4.8m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	US$344k	US$336k	38%
Other	US$573k	US$440k	62%
Total Compensation	US$917k	US$776k	100%

Speaking on an industry level, nearly 62% of total compensation represents salary, while the remainder of 38% is other remuneration. EcoSynthetix sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

EcoSynthetix Inc.'s Growth

EcoSynthetix Inc.'s earnings per share (EPS) grew 22% per year over the last three years. Its revenue is up 25% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 EcoSynthetix Inc. Been A Good Investment?

Given the total shareholder loss of 24% over three years, many shareholders in EcoSynthetix Inc. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

So you may want to check if insiders are buying EcoSynthetix shares with their own money (free access).

Important note: EcoSynthetix is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.