We Discuss Why Intermap Technologies Corporation's (TSE:IMP) CEO Compensation May Be Closely Reviewed

Key Insights

• Intermap Technologies to hold its Annual General Meeting on 13th of June
• Total pay for CEO Patrick Blott includes US$495.0k salary
• Total compensation is 167% above industry average
• Intermap Technologies' three-year loss to shareholders was 23% while its EPS was down 73% over the past three years

Intermap Technologies Corporation (TSE:IMP) has not performed well recently and CEO Patrick Blott will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 13th of June. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for Intermap Technologies

Comparing Intermap Technologies Corporation's CEO Compensation With The Industry

At the time of writing, our data shows that Intermap Technologies Corporation has a market capitalization of CA$24m, and reported total annual CEO compensation of US$614k for the year to December 2023. That's a notable increase of 12% on last year. In particular, the salary of US$495.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Canadian Software industry with market capitalizations below CA$273m, reported a median total CEO compensation of US$230k. Accordingly, our analysis reveals that Intermap Technologies Corporation pays Patrick Blott north of the industry median. Moreover, Patrick Blott also holds CA$3.5m worth of Intermap Technologies stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 74% of total compensation represents salary and 26% is other remuneration. Our data reveals that Intermap Technologies allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Intermap Technologies Corporation's Growth

Over the last three years, Intermap Technologies Corporation has shrunk its earnings per share by 73% per year. It saw its revenue drop 12% over the last year.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Intermap Technologies Corporation Been A Good Investment?

With a three year total loss of 23% for the shareholders, Intermap Technologies Corporation would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

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 concerning) in Intermap Technologies we think you should know about.

Important note: Intermap Technologies 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. 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.