Shareholders Will Probably Hold Off On Increasing Thinkific Labs Inc.'s (TSE:THNC) CEO Compensation For The Time Being

Key Insights

• Thinkific Labs will host its Annual General Meeting on 20th of June
• Total pay for CEO Greg Smith includes US$261.3k salary
• The total compensation is 49% higher than the average for the industry
• Thinkific Labs' EPS grew by 99% over the past three years while total shareholder return over the past three years was 37%

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CEO Greg Smith has done a decent job of delivering relatively good performance at Thinkific Labs Inc. (TSE:THNC) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 20th of June. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Thinkific Labs

Comparing Thinkific Labs Inc.'s CEO Compensation With The Industry

According to our data, Thinkific Labs Inc. has a market capitalization of CA$151m, and paid its CEO total annual compensation worth US$301k over the year to December 2024. Notably, that's a decrease of 10% over the year before. In particular, the salary of US$261.3k, 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$272m, reported a median total CEO compensation of US$203k. This suggests that Greg Smith is paid more than the median for the industry. Furthermore, Greg Smith directly owns CA$44m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 84% of total compensation out of all the companies we analyzed, while other remuneration made up 16% of the pie. There isn't a significant difference between Thinkific Labs and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Thinkific Labs Inc.'s Growth

Thinkific Labs Inc. has seen its earnings per share (EPS) increase by 99% a year over the past three years. Its revenue is up 13% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Thinkific Labs Inc. Been A Good Investment?

Most shareholders would probably be pleased with Thinkific Labs Inc. for providing a total return of 37% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

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.

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 2 warning signs for Thinkific Labs that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.