Should Shareholders Have Second Thoughts About A Pay Rise For Armada Data Corporation's (CVE:ARD) CEO This Year?

Key Insights

• Armada Data's Annual General Meeting to take place on 9th of November
• CEO R. Matthews' total compensation includes salary of CA$110.0k
• The overall pay is 70% below the industry average
• Over the past three years, Armada Data's EPS fell by 79% and over the past three years, the total loss to shareholders 84%

Performance at Armada Data Corporation (CVE:ARD) has not been particularly rosy recently and shareholders will likely be holding CEO R. Matthews and the board accountable for this. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 9th of November. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

Check out our latest analysis for Armada Data

How Does Total Compensation For R. Matthews Compare With Other Companies In The Industry?

According to our data, Armada Data Corporation has a market capitalization of CA$265k, and paid its CEO total annual compensation worth CA$121k over the year to May 2023. That's a fairly small increase of 5.9% over the previous year. In particular, the salary of CA$110.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Canadian Interactive Media and Services industry with market capitalizations under CA$275m, the reported median total CEO compensation was CA$398k. Accordingly, Armada Data pays its CEO under the industry median.

Component	2023	2022	Proportion (2023)
Salary	CA$110k	CA$105k	91%
Other	CA$11k	CA$8.7k	9%
Total Compensation	CA$121k	CA$114k	100%

On an industry level, around 87% of total compensation represents salary and 13% is other remuneration. Armada Data is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Armada Data Corporation's Growth

Armada Data Corporation has reduced its earnings per share by 79% a year over the last three years. In the last year, its revenue is down 13%.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Armada Data Corporation Been A Good Investment?

With a total shareholder return of -84% over three years, Armada Data Corporation shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 5 warning signs (and 4 which are potentially serious) in Armada Data we think you should know about.

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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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.