Shareholders May Be More Conservative With Mobi724 Global Solutions Inc.'s (CVE:MOS) CEO Compensation For Now

In the past three years, the share price of Mobi724 Global Solutions Inc. (CVE:MOS) has struggled to grow and now shareholders are sitting on a loss. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 23 June 2021. 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 Mobi724 Global Solutions

How Does Total Compensation For Marcel Vienneau Compare With Other Companies In The Industry?

According to our data, Mobi724 Global Solutions Inc. has a market capitalization of CA$11m, and paid its CEO total annual compensation worth CA$318k over the year to December 2020. We note that's an increase of 29% above last year. Notably, the salary which is CA$208.3k, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below CA$243m, reported a median total CEO compensation of CA$185k. Hence, we can conclude that Marcel Vienneau is remunerated higher than the industry median. Furthermore, Marcel Vienneau directly owns CA$1.0m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	CA$208k	CA$205k	65%
Other	CA$110k	CA$42k	35%
Total Compensation	CA$318k	CA$247k	100%

Speaking on an industry level, nearly 77% of total compensation represents salary, while the remainder of 23% is other remuneration. Mobi724 Global Solutions 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.

A Look at Mobi724 Global Solutions Inc.'s Growth Numbers

Mobi724 Global Solutions Inc.'s earnings per share (EPS) grew 25% per year over the last three years. It saw its revenue drop 55% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few 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 Mobi724 Global Solutions Inc. Been A Good Investment?

Few Mobi724 Global Solutions Inc. shareholders would feel satisfied with the return of -57% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. 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.

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 6 warning signs (and 4 which are a bit unpleasant) in Mobi724 Global Solutions we think you should know about.

Switching gears from Mobi724 Global Solutions, 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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