We Discuss Why Vior Inc.'s (CVE:VIO) CEO Will Find It Hard To Get A Pay Rise From Shareholders This Year

The share price of Vior Inc. (CVE:VIO) has struggled to grow by much over the last few years and probably has to do with the fact that earnings growth has gone backwards. Some of these issues will occupy shareholders' minds as the AGM rolls around on 07 December 2022. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

Check out our latest analysis for Vior

Comparing Vior Inc.'s CEO Compensation With The Industry

Our data indicates that Vior Inc. has a market capitalization of CA$9.7m, and total annual CEO compensation was reported as CA$180k for the year to June 2022. That is, the compensation was roughly the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth CA$180k.

For comparison, other companies in the industry with market capitalizations below CA$271m, reported a median total CEO compensation of CA$182k. This suggests that Vior remunerates its CEO largely in line with the industry average. Furthermore, Mark Fedosiewich directly owns CA$954k worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 86% of total compensation represents salary, while the remainder of 14% is other remuneration. On a company level, Vior prefers to reward its CEO through a salary, opting not to pay Mark Fedosiewich through non-salary benefits. 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

Over the last three years, Vior Inc. has shrunk its earnings per share by 49% per year. Its revenue is down 91% over the previous year.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 5.0% 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.

To Conclude...

Vior rewards its CEO solely through a salary, ignoring non-salary benefits completely. The flat share price growth combined with the the fact that earnings have failed to grow makes us wonder whether the share price will have any further strong momentum. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 4 warning signs for Vior (3 are significant!) that you should be aware of before investing here.

Important note: Vior 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.