It's Unlikely That Avivagen Inc.'s (CVE:VIV) CEO Will See A Huge Pay Rise This Year

Shareholders of Avivagen Inc. (CVE:VIV) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 08 April 2021. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Avivagen

How Does Total Compensation For G. F. Anthony Compare With Other Companies In The Industry?

At the time of writing, our data shows that Avivagen Inc. has a market capitalization of CA$29m, and reported total annual CEO compensation of CA$420k for the year to October 2020. That is, the compensation was roughly the same as last year. In particular, the salary of CA$362.4k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below CA$251m, reported a median total CEO compensation of CA$230k. This suggests that G. F. Anthony is paid more than the median for the industry. What's more, G. F. Anthony holds CA$391k worth of shares in the company in their own name.

Component	2020	2019	Proportion (2020)
Salary	CA$362k	CA$362k	86%
Other	CA$57k	CA$50k	14%
Total Compensation	CA$420k	CA$412k	100%

Talking in terms of the industry, salary represented approximately 67% of total compensation out of all the companies we analyzed, while other remuneration made up 33% of the pie. It's interesting to note that Avivagen pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Avivagen Inc.'s Growth

Avivagen Inc. has seen its earnings per share (EPS) increase by 11% a year over the past three years. Its revenue is up 32% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Avivagen Inc. Been A Good Investment?

With a total shareholder return of -40% over three years, Avivagen Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

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. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 7 warning signs (and 3 which are significant) in Avivagen we think you should know about.

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. 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.
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