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Shareholders Will Probably Hold Off On Increasing Acceleware Ltd.'s (CVE:AXE) CEO Compensation For The Time Being
Key Insights
- Acceleware's Annual General Meeting to take place on 22nd of May
- CEO Geoff Clark's total compensation includes salary of CA$220.5k
- The total compensation is similar to the average for the industry
- Over the past three years, Acceleware's EPS grew by 48% and over the past three years, the total loss to shareholders 87%
The underwhelming share price performance of Acceleware Ltd. (CVE:AXE) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 22nd of May. They could also influence management through voting on resolutions such as executive remuneration. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
See our latest analysis for Acceleware
Comparing Acceleware Ltd.'s CEO Compensation With The Industry
At the time of writing, our data shows that Acceleware Ltd. has a market capitalization of CA$11m, and reported total annual CEO compensation of CA$306k for the year to December 2024. That's a slight decrease of 3.2% on the prior year. We note that the salary portion, which stands at CA$220.5k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the Canadian Software industry with market capitalizations under CA$279m, the reported median total CEO compensation was CA$259k. This suggests that Acceleware remunerates its CEO largely in line with the industry average. Moreover, Geoff Clark also holds CA$289k worth of Acceleware stock directly under their own name.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | CA$221k | CA$221k | 72% |
| Other | CA$85k | CA$95k | 28% |
| Total Compensation | CA$306k | CA$316k | 100% |
Speaking on an industry level, nearly 81% of total compensation represents salary, while the remainder of 19% is other remuneration. In Acceleware's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Acceleware Ltd.'s Growth
Acceleware Ltd.'s earnings per share (EPS) grew 48% per year over the last three years. In the last year, its revenue is up 989%.
This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Acceleware Ltd. Been A Good Investment?
Few Acceleware Ltd. shareholders would feel satisfied with the return of -87% over three years. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 5 warning signs for Acceleware (3 shouldn't be ignored!) that you should be aware of before investing here.
Switching gears from Acceleware, 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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Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
About TSXV:AXE
Acceleware
Operates as a clean-tech company in Canada and the United States.
Medium-low risk with weak fundamentals.
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