MediaValet Inc.'s (TSE:MVP) CEO Compensation Is Looking A Bit Stretched At The Moment

CEO David MacLaren has done a decent job of delivering relatively good performance at MediaValet Inc. (TSE:MVP) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 23 June 2021. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for MediaValet

Comparing MediaValet Inc.'s CEO Compensation With the industry

Our data indicates that MediaValet Inc. has a market capitalization of CA$93m, and total annual CEO compensation was reported as CA$328k for the year to December 2020. That's a notable decrease of 17% on last year. In particular, the salary of CA$255.6k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under CA$243m, the reported median total CEO compensation was CA$202k. This suggests that David MacLaren is paid more than the median for the industry. What's more, David MacLaren holds CA$1.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	CA$256k	CA$237k	78%
Other	CA$72k	CA$159k	22%
Total Compensation	CA$328k	CA$396k	100%

On an industry level, roughly 71% of total compensation represents salary and 29% is other remuneration. MediaValet is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at MediaValet Inc.'s Growth Numbers

Over the past three years, MediaValet Inc. has seen its earnings per share (EPS) grow by 54% per year. Its revenue is up 34% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has MediaValet Inc. Been A Good Investment?

We think that the total shareholder return of 260%, over three years, would leave most MediaValet 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.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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 compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for MediaValet that you should be aware of before investing.

Important note: MediaValet 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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