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

Key Insights

• NexLiving Communities' Annual General Meeting to take place on 4th of June
• Salary of CA$300.0k is part of CEO Stavro Stathonikos's total remuneration
• Total compensation is 35% above industry average
• NexLiving Communities' EPS declined by 21% over the past three years while total shareholder loss over the past three years was 47%

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In the past three years, the share price of NexLiving Communities Inc. (CVE:NXLV) has struggled to grow and now shareholders are sitting on a loss. Per share earnings growth is also poor, despite revenues growing. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 4th of June, where they can impact on future company performance by voting on resolutions, including executive compensation. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

View our latest analysis for NexLiving Communities

Comparing NexLiving Communities Inc.'s CEO Compensation With The Industry

According to our data, NexLiving Communities Inc. has a market capitalization of CA$56m, and paid its CEO total annual compensation worth CA$405k over the year to December 2024. We note that's an increase of 35% above last year. We note that the salary portion, which stands at CA$300.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Canadian Real Estate industry with market capitalizations under CA$277m, the reported median total CEO compensation was CA$300k. Hence, we can conclude that Stavro Stathonikos is remunerated higher than the industry median. What's more, Stavro Stathonikos holds CA$277k worth of shares in the company in their own name.

On an industry level, roughly 51% of total compensation represents salary and 49% is other remuneration. It's interesting to note that NexLiving Communities pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at NexLiving Communities Inc.'s Growth Numbers

Over the last three years, NexLiving Communities Inc. has shrunk its earnings per share by 21% per year. Its revenue is up 44% over the last year.

The reduction in EPS, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one 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 NexLiving Communities Inc. Been A Good Investment?

Few NexLiving Communities Inc. shareholders would feel satisfied with the return of -47% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. In the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan is in line with their 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 did our research and identified 4 warning signs (and 2 which are a bit unpleasant) in NexLiving Communities we think you should know about.

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.