Shareholders May Be More Conservative With Vext Science, Inc.'s (CSE:VEXT) CEO Compensation For Now

Shareholders of Vext Science, Inc. (CSE:VEXT) 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. These are some of the concerns that shareholders may want to bring up at the next AGM held on 15 December 2022. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Vext Science

Comparing Vext Science, Inc.'s CEO Compensation With The Industry

According to our data, Vext Science, Inc. has a market capitalization of CA$34m, and paid its CEO total annual compensation worth US$414k over the year to December 2021. That's a notable increase of 89% on last year. We note that the salary portion, which stands at US$300.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below CA$272m, reported a median total CEO compensation of US$198k. Hence, we can conclude that Eric Offenberger is remunerated higher than the industry median. What's more, Eric Offenberger holds CA$365k worth of shares in the company in their own name.

Component	2021	2020	Proportion (2021)
Salary	US$300k	US$219k	72%
Other	US$114k	-	28%
Total Compensation	US$414k	US$219k	100%

On an industry level, around 79% of total compensation represents salary and 21% is other remuneration. Although there is a difference in how total compensation is set, Vext Science more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Vext Science, Inc.'s Growth Numbers

Over the past three years, Vext Science, Inc. has seen its earnings per share (EPS) grow by 8.0% per year. Its revenue is up 6.4% over the last year.

We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Vext Science, Inc. Been A Good Investment?

Few Vext Science, Inc. shareholders would feel satisfied with the return of -66% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. 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 can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for Vext Science that investors should be aware of in a dynamic business environment.

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.

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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.