Mike Robb became the CEO of AirIQ Inc. (CVE:IQ) in 2014, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether AirIQ pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for AirIQ
How Does Total Compensation For Mike Robb Compare With Other Companies In The Industry?
Our data indicates that AirIQ Inc. has a market capitalization of CA$11m, and total annual CEO compensation was reported as CA$189k for the year to March 2020. That's a notable increase of 23% on last year. Notably, the salary which is CA$126.5k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below CA$255m, we found that the median total CEO compensation was CA$223k. This suggests that AirIQ remunerates its CEO largely in line with the industry average. What's more, Mike Robb holds CA$290k worth of shares in the company in their own name.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | CA$127k | CA$127k | 67% |
| Other | CA$62k | CA$27k | 33% |
| Total Compensation | CA$189k | CA$154k | 100% |
On an industry level, roughly 77% of total compensation represents salary and 23% is other remuneration. It's interesting to note that AirIQ allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at AirIQ Inc.'s Growth Numbers
Over the past three years, AirIQ Inc. has seen its earnings per share (EPS) grow by 30% per year. In the last year, its revenue is down 26%.
Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 AirIQ Inc. Been A Good Investment?
Most shareholders would probably be pleased with AirIQ Inc. for providing a total return of 87% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
As previously discussed, Mike is compensated close to the median for companies of its size, and which belong to the same industry. The company is growing EPS and total shareholder returns have been pleasing. So one could argue that CEO compensation is quite modest, if you consider company performance! In fact, shareholders might even think the CEO deserves a raise as a reward due to the fantastic returns generated.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for AirIQ (of which 2 are a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.
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. 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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About TSXV:IQ
Flawless balance sheet slight.
