How Much Is QYOU Media Inc. (CVE:QYOU) Paying Its CEO?

This article will reflect on the compensation paid to Curt Marvis who has served as CEO of QYOU Media Inc. (CVE:QYOU) since 2017. This analysis will also assess whether QYOU Media pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for QYOU Media

How Does Total Compensation For Curt Marvis Compare With Other Companies In The Industry?

Our data indicates that QYOU Media Inc. has a market capitalization of CA$62m, and total annual CEO compensation was reported as CA$358k for the year to June 2020. We note that's an increase of 12% above last year. We note that the salary portion, which stands at CA$315.5k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under CA$256m, the reported median total CEO compensation was CA$681k. In other words, QYOU Media pays its CEO lower than the industry median. What's more, Curt Marvis holds CA$430k worth of shares in the company in their own name.

Speaking on an industry level, salary and non-salary portions, both make up 50% each of the total remuneration. QYOU Media pays out 88% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

QYOU Media Inc.'s Growth

QYOU Media Inc. has seen its earnings per share (EPS) increase by 47% a year over the past three years. Its revenue is down 26% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 QYOU Media Inc. Been A Good Investment?

Since shareholders would have lost about 45% over three years, some QYOU Media Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As previously discussed, Curt is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. However we must not forget that the EPS growth has been very strong over three years. It's tough to criticize CEO compensation when the per-share EPS movement is positive. But we believe shareholders would want to see healthier returns before the CEO gets a raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 6 warning signs for QYOU Media (of which 3 are potentially serious!) that you should know about in order to have a holistic understanding of the stock.

Important note: QYOU Media 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. 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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