We Think Shareholders Will Probably Be Generous With IBEX Technologies Inc.'s (CVE:IBT) CEO Compensation

We have been pretty impressed with the performance at IBEX Technologies Inc. (CVE:IBT) recently and CEO Paul Baehr deserves a mention for their role in it. Coming up to the next AGM on 16 February 2022, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.

View our latest analysis for IBEX Technologies

How Does Total Compensation For Paul Baehr Compare With Other Companies In The Industry?

At the time of writing, our data shows that IBEX Technologies Inc. has a market capitalization of CA$11m, and reported total annual CEO compensation of CA$339k for the year to July 2021. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at CA$264.8k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below CA$253m, reported a median total CEO compensation of CA$333k. From this we gather that Paul Baehr is paid around the median for CEOs in the industry. Furthermore, Paul Baehr directly owns CA$1.1m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	CA$265k	CA$258k	78%
Other	CA$75k	CA$90k	22%
Total Compensation	CA$339k	CA$348k	100%

Speaking on an industry level, nearly 85% of total compensation represents salary, while the remainder of 15% is other remuneration. IBEX Technologies is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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.

A Look at IBEX Technologies Inc.'s Growth Numbers

IBEX Technologies Inc. has seen its earnings per share (EPS) increase by 90% a year over the past three years. In the last year, its revenue is up 12%.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 IBEX Technologies Inc. Been A Good Investment?

We think that the total shareholder return of 131%, over three years, would leave most IBEX Technologies Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

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 4 warning signs for IBEX Technologies (1 is concerning!) that you should be aware of before investing here.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.