Increases to DMG Blockchain Solutions Inc.'s (CVE:DMGI) CEO Compensation Might Cool off for now

Key Insights

• DMG Blockchain Solutions will host its Annual General Meeting on 31st of March
• CEO Sheldon Bennett's total compensation includes salary of CA$387.9k
• The total compensation is 274% higher than the average for the industry
• DMG Blockchain Solutions' three-year loss to shareholders was 65% while its EPS grew by 14% over the past three years

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In the past three years, the share price of DMG Blockchain Solutions Inc. (CVE:DMGI) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 31st of March. 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 DMG Blockchain Solutions

Comparing DMG Blockchain Solutions Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that DMG Blockchain Solutions Inc. has a market capitalization of CA$56m, and reported total annual CEO compensation of CA$1.0m for the year to September 2024. That's a notable increase of 29% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at CA$388k.

For comparison, other companies in the Canadian Software industry with market capitalizations below CA$287m, reported a median total CEO compensation of CA$269k. This suggests that Sheldon Bennett is paid more than the median for the industry. What's more, Sheldon Bennett 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	2024	2023	Proportion (2024)
Salary	CA$388k	CA$339k	39%
Other	CA$617k	CA$440k	61%
Total Compensation	CA$1.0m	CA$779k	100%

Talking in terms of the industry, salary represented approximately 78% of total compensation out of all the companies we analyzed, while other remuneration made up 22% of the pie. In DMG Blockchain Solutions' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

DMG Blockchain Solutions Inc.'s Growth

DMG Blockchain Solutions Inc.'s earnings per share (EPS) grew 14% per year over the last three years. It achieved revenue growth of 18% 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. 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 DMG Blockchain Solutions Inc. Been A Good Investment?

Few DMG Blockchain Solutions Inc. shareholders would feel satisfied with the return of -65% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. 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.

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 5 warning signs (and 2 which don't sit too well with us) in DMG Blockchain Solutions we think you should know about.

Important note: DMG Blockchain Solutions 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.