Shareholders Will Probably Not Have Any Issues With Information Services Corporation's (TSE:ISC) CEO Compensation
Key Insights
- Information Services to hold its Annual General Meeting on 13th of May
- Salary of CA$425.0k is part of CEO Shawn Peters's total remuneration
- The overall pay is comparable to the industry average
- Information Services' EPS declined by 16% over the past three years while total shareholder return over the past three years was 40%
Under the guidance of CEO Shawn Peters, Information Services Corporation (TSE:ISC) has performed reasonably well recently. As shareholders go into the upcoming AGM on 13th of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. We present our case of why we think CEO compensation looks fair.
Check out our latest analysis for Information Services
Comparing Information Services Corporation's CEO Compensation With The Industry
At the time of writing, our data shows that Information Services Corporation has a market capitalization of CA$504m, and reported total annual CEO compensation of CA$1.1m for the year to December 2024. That's mostly flat as compared to the prior year's compensation. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at CA$425k.
On examining similar-sized companies in the Canadian Real Estate industry with market capitalizations between CA$276m and CA$1.1b, we discovered that the median CEO total compensation of that group was CA$1.1m. From this we gather that Shawn Peters is paid around the median for CEOs in the industry. Moreover, Shawn Peters also holds CA$432k worth of Information Services stock directly under their own name.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | CA$425k | CA$423k | 38% |
| Other | CA$698k | CA$700k | 62% |
| Total Compensation | CA$1.1m | CA$1.1m | 100% |
Speaking on an industry level, nearly 58% of total compensation represents salary, while the remainder of 42% is other remuneration. In Information Services' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
Information Services Corporation's Growth
Information Services Corporation has reduced its earnings per share by 16% a year over the last three years. In the last year, its revenue is up 15%.
The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Information Services Corporation Been A Good Investment?
We think that the total shareholder return of 40%, over three years, would leave most Information Services Corporation shareholders smiling. 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 overall company performance has been commendable, however there are still areas for improvement. We reckon that there are some shareholders who may be hesitant to increase CEO pay further until EPS growth starts to improve, despite the robust revenue growth.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Information Services that you should be aware of before investing.
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.
Valuation is complex, but we're here to simplify it.
Discover if Information Services might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.