Here's Why We Think Vior Inc.'s (CVE:VIO) CEO Compensation Looks Fair for the time being

Key Insights

• Vior's Annual General Meeting to take place on 12th of December
• Salary of CA$180.0k is part of CEO Mark Fedosiewich's total remuneration
• Total compensation is similar to the industry average
• Over the past three years, Vior's EPS fell by 65% and over the past three years, the total shareholder return was 7.7%

Performance at Vior Inc. (CVE:VIO) has been reasonably good and CEO Mark Fedosiewich has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 12th of December. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for Vior

Comparing Vior Inc.'s CEO Compensation With The Industry

According to our data, Vior Inc. has a market capitalization of CA$14m, and paid its CEO total annual compensation worth CA$180k over the year to June 2023. This was the same as last year. Notably, the salary of CA$180k is the entirety of the CEO compensation.

On comparing similar-sized companies in the Canadian Metals and Mining industry with market capitalizations below CA$272m, we found that the median total CEO compensation was CA$185k. So it looks like Vior compensates Mark Fedosiewich in line with the median for the industry. Furthermore, Mark Fedosiewich directly owns CA$1.3m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	CA$180k	CA$180k	100%
Other	-	-	-
Total Compensation	CA$180k	CA$180k	100%

On an industry level, around 94% of total compensation represents salary and 6% is other remuneration. At the company level, Vior pays Mark Fedosiewich solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Vior Inc.'s Growth Numbers

Vior Inc. has reduced its earnings per share by 65% a year over the last three years. In the last year, its revenue is up 6,885%.

The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Vior Inc. Been A Good Investment?

Vior Inc. has generated a total shareholder return of 7.7% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

In Summary...

Vior rewards its CEO solely through a salary, ignoring non-salary benefits completely. Although the company has performed relatively well, we still think there are some areas that could be improved. We reckon that there are some shareholders who may be hesitant to increase CEO pay further until EPS growth starts to improve, despite the robust revenue growth.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 5 warning signs for Vior you should be aware of, and 3 of them are potentially serious.

Switching gears from Vior, 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.