This Is Why Rapid Dose Therapeutics Corp.'s (CSE:DOSE) CEO Compensation Looks Appropriate

Key Insights

• Rapid Dose Therapeutics' Annual General Meeting to take place on 28th of August
• Total pay for CEO Mark Upsdell includes CA$150.0k salary
• The total compensation is 85% less than the average for the industry
• Over the past three years, Rapid Dose Therapeutics' EPS grew by 0.04% and over the past three years, the total loss to shareholders 75%

The performance at Rapid Dose Therapeutics Corp. (CSE:DOSE) has been rather lacklustre of late and shareholders may be wondering what CEO Mark Upsdell is planning to do about this. At the next AGM coming up on 28th of August, they can influence managerial decision making through voting on resolutions, including executive remuneration. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We think CEO compensation looks appropriate given the data we have put together.

View our latest analysis for Rapid Dose Therapeutics

How Does Total Compensation For Mark Upsdell Compare With Other Companies In The Industry?

According to our data, Rapid Dose Therapeutics Corp. has a market capitalization of CA$19m, and paid its CEO total annual compensation worth CA$150k over the year to February 2024. That's slightly lower by 3.6% over the previous year. It is worth noting that the CEO compensation consists entirely of the salary, worth CA$150k.

In comparison with other companies in the Canada Life Sciences industry with market capitalizations under CA$272m, the reported median total CEO compensation was CA$1.0m. Accordingly, Rapid Dose Therapeutics pays its CEO under the industry median. Moreover, Mark Upsdell also holds CA$1.8m worth of Rapid Dose Therapeutics stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 19% of total compensation represents salary and 81% is other remuneration. At the company level, Rapid Dose Therapeutics pays Mark Upsdell 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 Rapid Dose Therapeutics Corp.'s Growth Numbers

Rapid Dose Therapeutics Corp. saw earnings per share stay pretty flat over the last three years. Its revenue is up 31% over the last year.

It's great to see that revenue growth is strong. With that in mind, the modestly improving EPS seems positive. We wouldn't say this is necessarily top notch growth, but it is certainly promising. 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 Rapid Dose Therapeutics Corp. Been A Good Investment?

The return of -75% over three years would not have pleased Rapid Dose Therapeutics Corp. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Rapid Dose Therapeutics rewards its CEO solely through a salary, ignoring non-salary benefits completely. The loss to shareholders over the past three years is certainly concerning. The disappointing performance may have something to do with the flat earnings growth. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

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 6 warning signs for Rapid Dose Therapeutics (3 are a bit concerning!) that you should be aware of before investing here.

Important note: Rapid Dose Therapeutics 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.