Shareholders Would Not Be Objecting To AirIQ Inc.'s (CVE:IQ) CEO Compensation And Here's Why

It would be hard to discount the role that CEO Mike Robb has played in delivering the impressive results at AirIQ Inc. (CVE:IQ) recently. Coming up to the next AGM on 29 September 2021, shareholders would be keeping this in mind. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for AirIQ

How Does Total Compensation For Mike Robb Compare With Other Companies In The Industry?

At the time of writing, our data shows that AirIQ Inc. has a market capitalization of CA$8.7m, and reported total annual CEO compensation of CA$225k for the year to March 2021. Notably, that's an increase of 19% over the year before. We note that the salary portion, which stands at CA$156.3k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under CA$255m, the reported median total CEO compensation was CA$195k. From this we gather that Mike Robb is paid around the median for CEOs in the industry. Furthermore, Mike Robb directly owns CA$237k worth of shares in the company.

Component	2021	2020	Proportion (2021)
Salary	CA$156k	CA$127k	69%
Other	CA$69k	CA$62k	31%
Total Compensation	CA$225k	CA$189k	100%

Talking in terms of the industry, salary represented approximately 79% of total compensation out of all the companies we analyzed, while other remuneration made up 21% of the pie. AirIQ pays a modest slice of remuneration through salary, as compared to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

AirIQ Inc.'s Growth

AirIQ Inc.'s earnings per share (EPS) grew 31% per year over the last three years. It saw its revenue drop 7.4% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 AirIQ Inc. Been A Good Investment?

Boasting a total shareholder return of 81% over three years, AirIQ Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 4 warning signs for AirIQ (2 don't sit too well with us!) that you should be aware of before investing here.

Important note: AirIQ 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.
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