Shareholders May Be A Bit More Conservative With Bluesky Digital Assets Corp.'s (CSE:BTC) CEO Compensation For Now

Key Insights

• Bluesky Digital Assets will host its Annual General Meeting on 1st of May
• Salary of CA$199.0k is part of CEO Ben Gelfand's total remuneration
• The overall pay is comparable to the industry average
• Bluesky Digital Assets' three-year loss to shareholders was 98% while its EPS grew by 11% over the past three years

Shareholders of Bluesky Digital Assets Corp. (CSE:BTC) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 1st of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for Bluesky Digital Assets

Comparing Bluesky Digital Assets Corp.'s CEO Compensation With The Industry

According to our data, Bluesky Digital Assets Corp. has a market capitalization of CA$3.4m, and paid its CEO total annual compensation worth CA$255k over the year to December 2023. That is, the compensation was roughly the same as last year. Notably, the salary which is CA$199.0k, represents most of the total compensation being paid.

For comparison, other companies in the Canadian Software industry with market capitalizations below CA$274m, reported a median total CEO compensation of CA$341k. From this we gather that Ben Gelfand is paid around the median for CEOs in the industry.

Component	2023	2022	Proportion (2023)
Salary	CA$199k	CA$163k	78%
Other	CA$56k	CA$97k	22%
Total Compensation	CA$255k	CA$260k	100%

On an industry level, roughly 71% of total compensation represents salary and 29% is other remuneration. Bluesky Digital Assets is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Bluesky Digital Assets Corp.'s Growth

Bluesky Digital Assets Corp. has seen its earnings per share (EPS) increase by 11% a year over the past three years. In the last year, its revenue has collapsed effectively to zero.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Bluesky Digital Assets Corp. Been A Good Investment?

Few Bluesky Digital Assets Corp. shareholders would feel satisfied with the return of -98% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

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. At 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 will likely improve performance in the future.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 6 warning signs for Bluesky Digital Assets that investors should look into moving forward.

Switching gears from Bluesky Digital Assets, 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.