Shareholders Will Probably Hold Off On Increasing Peak Fintech Group Inc.'s (CSE:PKK) CEO Compensation For The Time Being

Performance at Peak Fintech Group Inc. (CSE:PKK) has been reasonably good and CEO Johnson Joseph has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 30 June 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Peak Fintech Group

Comparing Peak Fintech Group Inc.'s CEO Compensation With the industry

Our data indicates that Peak Fintech Group Inc. has a market capitalization of CA$288m, and total annual CEO compensation was reported as CA$298k for the year to December 2020. That's a notable increase of 42% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CA$141k.

On examining similar-sized companies in the industry with market capitalizations between CA$123m and CA$492m, we discovered that the median CEO total compensation of that group was CA$196k. Accordingly, our analysis reveals that Peak Fintech Group Inc. pays Johnson Joseph north of the industry median. Moreover, Johnson Joseph also holds CA$1.6m worth of Peak Fintech Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	CA$141k	CA$117k	47%
Other	CA$157k	CA$93k	53%
Total Compensation	CA$298k	CA$210k	100%

On an industry level, around 71% of total compensation represents salary and 29% is other remuneration. It's interesting to note that Peak Fintech Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Peak Fintech Group Inc.'s Growth Numbers

Over the past three years, Peak Fintech Group Inc. has seen its earnings per share (EPS) grow by 3.7% per year. Its revenue is up 260% over the last year.

We like the look of the strong year-on-year improvement in revenue. And in that context, the modest EPS improvement certainly isn't shabby. We wouldn't say this is necessarily top notch growth, but it is certainly promising. 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 Peak Fintech Group Inc. Been A Good Investment?

We think that the total shareholder return of 388%, over three years, would leave most Peak Fintech Group Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

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, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for Peak Fintech Group (of which 2 don't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Important note: Peak Fintech Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. 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.
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