It's Unlikely That Intouch Insight Ltd.'s (CVE:INX) CEO Will See A Huge Pay Rise This Year

Under the guidance of CEO Cameron Watt, Intouch Insight Ltd. (CVE:INX) has performed reasonably well recently. As shareholders go into the upcoming AGM on 17 June 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Intouch Insight

Comparing Intouch Insight Ltd.'s CEO Compensation With the industry

Our data indicates that Intouch Insight Ltd. has a market capitalization of CA$14m, and total annual CEO compensation was reported as CA$315k for the year to December 2020. That's a notable decrease of 20% on last year. In particular, the salary of CA$164.1k, makes up a fairly large portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under CA$242m, the reported median total CEO compensation was CA$185k. Hence, we can conclude that Cameron Watt is remunerated higher than the industry median. Moreover, Cameron Watt also holds CA$1.4m worth of Intouch Insight stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	CA$164k	CA$215k	52%
Other	CA$151k	CA$181k	48%
Total Compensation	CA$315k	CA$396k	100%

On an industry level, around 77% of total compensation represents salary and 23% is other remuneration. Intouch Insight sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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 Intouch Insight Ltd.'s Growth Numbers

Intouch Insight Ltd.'s earnings per share (EPS) grew 89% per year over the last three years. In the last year, its revenue is down 42%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Intouch Insight Ltd. Been A Good Investment?

Intouch Insight Ltd. has served shareholders reasonably well, with a total return of 27% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 4 warning signs for Intouch Insight that investors should look into moving forward.

Switching gears from Intouch Insight, 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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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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