It's Probably Less Likely That InnoCan Pharma Corporation's (CSE:INNO) CEO Will See A Huge Pay Rise This Year

Key Insights

• InnoCan Pharma will host its Annual General Meeting on 9th of May
• CEO Iris Bincovich's total compensation includes salary of US$268.0k
• Total compensation is similar to the industry average
• Over the past three years, InnoCan Pharma's EPS grew by 62% and over the past three years, the total loss to shareholders 51%

The underwhelming share price performance of InnoCan Pharma Corporation (CSE:INNO) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 9th of May could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for InnoCan Pharma

Comparing InnoCan Pharma Corporation's CEO Compensation With The Industry

According to our data, InnoCan Pharma Corporation has a market capitalization of CA$76m, and paid its CEO total annual compensation worth US$337k over the year to December 2023. We note that's a decrease of 16% compared to last year. We note that the salary portion, which stands at US$268.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Canadian Pharmaceuticals industry with market capitalizations under CA$274m, the reported median total CEO compensation was US$366k. So it looks like InnoCan Pharma compensates Iris Bincovich in line with the median for the industry. What's more, Iris Bincovich holds CA$1.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$268k	US$291k	80%
Other	US$69k	US$110k	20%
Total Compensation	US$337k	US$401k	100%

On an industry level, around 65% of total compensation represents salary and 35% is other remuneration. According to our research, InnoCan Pharma has allocated a higher percentage of pay to salary in comparison to the wider industry. 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.

InnoCan Pharma Corporation's Growth

InnoCan Pharma Corporation has seen its earnings per share (EPS) increase by 62% a year over the past three years. It achieved revenue growth of 434% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 InnoCan Pharma Corporation Been A Good Investment?

The return of -51% over three years would not have pleased InnoCan Pharma Corporation shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for InnoCan Pharma that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.