Shareholders May Be More Conservative With IBEX Technologies Inc.'s (CVE:IBT) CEO Compensation For Now

Key Insights

• IBEX Technologies to hold its Annual General Meeting on 25 January 2023
• CEO Paul Baehr's total compensation includes salary of CA$269.6k
• Total compensation is 43% above industry average
• IBEX Technologies' EPS grew by 69% over the past three years while total shareholder return over the past three years was 515%

CEO Paul Baehr has done a decent job of delivering relatively good performance at IBEX Technologies Inc. (CVE:IBT) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 25 January 2023. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for IBEX Technologies

Comparing IBEX Technologies Inc.'s CEO Compensation With The Industry

Our data indicates that IBEX Technologies Inc. has a market capitalization of CA$21m, and total annual CEO compensation was reported as CA$434k for the year to July 2022. We note that's an increase of 28% above last year. Notably, the salary which is CA$269.6k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Canadian Biotechs industry with market capitalizations below CA$270m, we found that the median total CEO compensation was CA$305k. This suggests that Paul Baehr is paid more than the median for the industry. Furthermore, Paul Baehr directly owns CA$2.0m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	CA$270k	CA$265k	62%
Other	CA$165k	CA$75k	38%
Total Compensation	CA$434k	CA$339k	100%

Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. IBEX Technologies pays a modest slice of remuneration through salary, as compared to the broader 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.

IBEX Technologies Inc.'s Growth

IBEX Technologies Inc. has seen its earnings per share (EPS) increase by 69% a year over the past three years. It achieved revenue growth of 33% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 IBEX Technologies Inc. Been A Good Investment?

Boasting a total shareholder return of 515% over three years, IBEX Technologies Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

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. We've identified 1 warning sign for IBEX Technologies that investors should be aware of in a dynamic business environment.

Important note: IBEX Technologies 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.