We Think Some Shareholders May Hesitate To Increase Imperial Equities Inc.'s (CVE:IEI) CEO Compensation

CEO Sine Chadi has done a decent job of delivering relatively good performance at Imperial Equities Inc. (CVE:IEI) recently. As shareholders go into the upcoming AGM on 16 March 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Imperial Equities

How Does Total Compensation For Sine Chadi Compare With Other Companies In The Industry?

At the time of writing, our data shows that Imperial Equities Inc. has a market capitalization of CA$44m, and reported total annual CEO compensation of CA$300k for the year to September 2021. There was no change in the compensation compared to last year. Notably, the salary of CA$300k is the entirety of the CEO compensation.

On comparing similar-sized companies in the industry with market capitalizations below CA$258m, we found that the median total CEO compensation was CA$220k. This suggests that Sine Chadi is paid more than the median for the industry. Moreover, Sine Chadi also holds CA$13m 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	2021	2020	Proportion (2021)
Salary	CA$300k	CA$300k	100%
Other	-	-	-
Total Compensation	CA$300k	CA$300k	100%

On an industry level, roughly 65% of total compensation represents salary and 35% 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

Imperial Equities Inc.'s earnings per share (EPS) grew 112% per year over the last three years. In the last year, its revenue is up 14%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Imperial Equities Inc. Been A Good Investment?

Imperial Equities Inc. has served shareholders reasonably well, with a total return of 29% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Imperial Equities pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Imperial Equities (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

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.