Should Shareholders Reconsider Imperial Equities Inc.'s (CVE:IEI) CEO Compensation Package?

Key Insights

• Imperial Equities to hold its Annual General Meeting on 13th of March
• Total pay for CEO Sine Chadi includes CA$300.0k salary
• Total compensation is similar to the industry average
• Imperial Equities' EPS declined by 77% over the past three years while total shareholder loss over the past three years was 18%

The results at Imperial Equities Inc. (CVE:IEI) have been quite disappointing recently and CEO Sine Chadi bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 13th of March. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Imperial Equities

Comparing Imperial Equities Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Imperial Equities Inc. has a market capitalization of CA$34m, and reported total annual CEO compensation of CA$300k for the year to September 2024. That's a notable decrease of 22% on last year. Notably, the salary of CA$300k is the entirety of the CEO compensation.

In comparison with other companies in the Canadian Real Estate industry with market capitalizations under CA$287m, the reported median total CEO compensation was CA$259k. This suggests that Imperial Equities remunerates its CEO largely in line with the industry average. Moreover, Sine Chadi also holds CA$10.0m worth of Imperial Equities stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	CA$300k	CA$374k	100%
Other	-	CA$8.0k	-
Total Compensation	CA$300k	CA$382k	100%

On an industry level, roughly 76% of total compensation represents salary and 24% is other remuneration. Speaking on a company level, Imperial Equities prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Imperial Equities Inc.'s Growth

Over the last three years, Imperial Equities Inc. has shrunk its earnings per share by 77% per year. It saw its revenue drop 2.7% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Imperial Equities Inc. Been A Good Investment?

Since shareholders would have lost about 18% over three years, some Imperial Equities Inc. investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Imperial Equities pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 5 warning signs for Imperial Equities (of which 3 are concerning!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Imperial Equities, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.