We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Alphinat Inc.'s (CVE:NPA) CEO For Now

Simply Wall St
February 16, 2022
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CEO Curtis Page has done a decent job of delivering relatively good performance at Alphinat Inc. (CVE:NPA) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 23 February 2022. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Alphinat

How Does Total Compensation For Curtis Page Compare With Other Companies In The Industry?

At the time of writing, our data shows that Alphinat Inc. has a market capitalization of CA$5.1m, and reported total annual CEO compensation of CA$290k for the year to August 2021. We note that's an increase of 16% above last year. Notably, the salary which is CA$250.8k, 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$196k. This suggests that Curtis Page is paid more than the median for the industry. Furthermore, Curtis Page directly owns CA$280k worth of shares in the company.

Component20212020Proportion (2021)
Salary CA$251k CA$217k 86%
Other CA$40k CA$34k 14%
Total CompensationCA$290k CA$251k100%

On an industry level, roughly 91% of total compensation represents salary and 9% is other remuneration. Alphinat is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

TSXV:NPA CEO Compensation February 16th 2022

A Look at Alphinat Inc.'s Growth Numbers

Alphinat Inc. has seen its earnings per share (EPS) increase by 92% a year over the past three years. Its revenue is up 28% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Alphinat Inc. Been A Good Investment?

Boasting a total shareholder return of 100% over three years, Alphinat Inc. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 4 warning signs (and 2 which are significant) in Alphinat we think you should know about.

Important note: Alphinat 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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