Shareholders Will Likely Find Nerds on Site Inc.'s (CSE:NERD) CEO Compensation Acceptable

Key Insights

• Nerds on Site to hold its Annual General Meeting on 22nd of November
• Total pay for CEO Charlie Regan includes CA$120.1k salary
• The total compensation is 81% less than the average for the industry
• Nerds on Site's EPS grew by 44% over the past three years while total shareholder loss over the past three years was 60%

Shareholders may be wondering what CEO Charlie Regan plans to do to improve the less than great performance at Nerds on Site Inc. (CSE:NERD) recently. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 22nd of November. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. In our opinion, CEO compensation does not look excessive and we discuss why.

See our latest analysis for Nerds on Site

Comparing Nerds on Site Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Nerds on Site Inc. has a market capitalization of CA$5.4m, and reported total annual CEO compensation of CA$120k for the year to May 2024. This was the same amount the CEO received in the prior year. Notably, the salary of CA$120k is the entirety of the CEO compensation.

In comparison with other companies in the Canada IT industry with market capitalizations under CA$281m, the reported median total CEO compensation was CA$626k. In other words, Nerds on Site pays its CEO lower than the industry median. Moreover, Charlie Regan also holds CA$126k worth of Nerds on Site stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	CA$120k	CA$120k	100%
Other	-	-	-
Total Compensation	CA$120k	CA$120k	100%

On an industry level, roughly 60% of total compensation represents salary and 40% is other remuneration. Speaking on a company level, Nerds on Site 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.

A Look at Nerds on Site Inc.'s Growth Numbers

Over the past three years, Nerds on Site Inc. has seen its earnings per share (EPS) grow by 44% per year. Its revenue is up 7.0% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Nerds on Site Inc. Been A Good Investment?

Few Nerds on Site Inc. shareholders would feel satisfied with the return of -60% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Nerds on Site pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The fact that shareholders have earned a negative share price return is certainly disconcerting. This contrasts to the strong EPS growth recently however, and suggests that there may be other factors at play driving down the share price. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 4 warning signs for Nerds on Site that investors should be aware of in a dynamic business environment.

Switching gears from Nerds on Site, 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.