Cansortium Inc.'s (CSE:TIUM.U) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Cansortium will host its Annual General Meeting on 27th of August
• Salary of US$441.7k is part of CEO Robert Beasley's total remuneration
• The overall pay is 129% above the industry average
• Cansortium's three-year loss to shareholders was 80% while its EPS grew by 18% over the past three years

Shareholders of Cansortium Inc. (CSE:TIUM.U) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 27th of August. 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 Cansortium

How Does Total Compensation For Robert Beasley Compare With Other Companies In The Industry?

At the time of writing, our data shows that Cansortium Inc. has a market capitalization of US$41m, and reported total annual CEO compensation of US$773k for the year to December 2023. We note that's an increase of 23% above last year. Notably, the salary which is US$441.7k, represents a considerable chunk of the total compensation being paid.

In comparison with other companies in the Canadian Pharmaceuticals industry with market capitalizations under US$200m, the reported median total CEO compensation was US$338k. Hence, we can conclude that Robert Beasley is remunerated higher than the industry median. Furthermore, Robert Beasley directly owns US$97k worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	US$442k	US$360k	57%
Other	US$331k	US$266k	43%
Total Compensation	US$773k	US$626k	100%

On an industry level, roughly 62% of total compensation represents salary and 38% is other remuneration. There isn't a significant difference between Cansortium and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Cansortium Inc.'s Growth Numbers

Cansortium Inc.'s earnings per share (EPS) grew 18% per year over the last three years. Its revenue is up 12% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Cansortium Inc. Been A Good Investment?

Few Cansortium Inc. shareholders would feel satisfied with the return of -80% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

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. That's why we did some digging and identified 2 warning signs for Cansortium that investors should think about before committing capital to this stock.

Switching gears from Cansortium, 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.

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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.