Shareholders Will Likely Find DeepMarkit Corp.'s (CVE:MKT) CEO Compensation Acceptable

Performance at DeepMarkit Corp. (CVE:MKT) has been rather uninspiring recently and shareholders may be wondering how CEO Darold Parken plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 29 October 2021. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We think CEO compensation looks appropriate given the data we have put together.

See our latest analysis for DeepMarkit

How Does Total Compensation For Darold Parken Compare With Other Companies In The Industry?

At the time of writing, our data shows that DeepMarkit Corp. has a market capitalization of CA$4.3m, and reported total annual CEO compensation of CA$100k for the year to December 2020. This was the same as last year. Notably, the salary of CA$100k is the entirety of the CEO compensation.

For comparison, other companies in the industry with market capitalizations below CA$247m, reported a median total CEO compensation of CA$156k. Accordingly, DeepMarkit pays its CEO under the industry median. Moreover, Darold Parken also holds CA$139k worth of DeepMarkit stock directly under their own name.

Component	2020	2019	Proportion (2020)
Salary	CA$100k	CA$100k	100%
Other	-	-	-
Total Compensation	CA$100k	CA$100k	100%

Speaking on an industry level, nearly 77% of total compensation represents salary, while the remainder of 23% is other remuneration. At the company level, DeepMarkit pays Darold Parken solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at DeepMarkit Corp.'s Growth Numbers

Over the past three years, DeepMarkit Corp. has seen its earnings per share (EPS) grow by 75% per year. Its revenue is down 44% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has DeepMarkit Corp. Been A Good Investment?

Few DeepMarkit Corp. shareholders would feel satisfied with the return of -52% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

DeepMarkit rewards its CEO solely through a salary, ignoring non-salary benefits completely. The fact that shareholders have earned a negative share price return is certainly disconcerting. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. A key focus for the board and management will be how to align the share price with fundamentals. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 6 warning signs for DeepMarkit that investors should be aware of in a dynamic business environment.

Switching gears from DeepMarkit, 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.

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.

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