Katipult Technology Corp.'s (CVE:FUND) CEO Will Probably Struggle To See A Pay Rise This Year

Key Insights

• Katipult Technology to hold its Annual General Meeting on 14th of September
• Salary of CA$190.3k is part of CEO Gord Breese's total remuneration
• The total compensation is 48% less than the average for the industry
• Katipult Technology's EPS declined by 7.1% over the past three years while total shareholder loss over the past three years was 50%

The disappointing performance at Katipult Technology Corp. (CVE:FUND) will make some shareholders rather disheartened. The next AGM coming up on 14th of September will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. From our analysis below, we think CEO compensation looks appropriate for now.

Check out our latest analysis for Katipult Technology

How Does Total Compensation For Gord Breese Compare With Other Companies In The Industry?

At the time of writing, our data shows that Katipult Technology Corp. has a market capitalization of CA$8.6m, and reported total annual CEO compensation of CA$190k for the year to December 2022. That's slightly lower by 4.8% over the previous year. Notably, the salary of CA$190k is the entirety of the CEO compensation.

For comparison, other companies in the Canadian Software industry with market capitalizations below CA$274m, reported a median total CEO compensation of CA$363k. Accordingly, Katipult Technology pays its CEO under the industry median.

Component	2022	2021	Proportion (2022)
Salary	CA$190k	CA$200k	100%
Other	-	-	-
Total Compensation	CA$190k	CA$200k	100%

Speaking on an industry level, nearly 64% of total compensation represents salary, while the remainder of 36% is other remuneration. Speaking on a company level, Katipult Technology prefers to tread along a traditional path, disbursing all compensation through a salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Katipult Technology Corp.'s Growth Numbers

Over the last three years, Katipult Technology Corp. has shrunk its earnings per share by 7.1% per year. It achieved revenue growth of 13% over the last year.

Overall this is not a very positive result for shareholders. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that EPS has gone backwards over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Katipult Technology Corp. Been A Good Investment?

The return of -50% over three years would not have pleased Katipult Technology Corp. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Katipult Technology pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. 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.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 5 warning signs (and 4 which shouldn't be ignored) in Katipult Technology we think you should know about.

Switching gears from Katipult Technology, 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.

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.