Here's Why Some Shareholders May Not Be Too Generous With 01 Communique Laboratory Inc.'s (CVE:ONE) CEO Compensation This Year

Key Insights

• 01 Communique Laboratory will host its Annual General Meeting on 24th of April
• CEO Andrew Cheung's total compensation includes salary of CA$158.0k
• Total compensation is 32% below industry average
• 01 Communique Laboratory's EPS declined by 5.3% over the past three years while total shareholder loss over the past three years was 84%

The disappointing performance at 01 Communique Laboratory Inc. (CVE:ONE) will make some shareholders rather disheartened. At the upcoming AGM on 24th of April, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. The data we gathered below shows that CEO compensation looks acceptable for now.

View our latest analysis for 01 Communique Laboratory

Comparing 01 Communique Laboratory Inc.'s CEO Compensation With The Industry

According to our data, 01 Communique Laboratory Inc. has a market capitalization of CA$6.7m, and paid its CEO total annual compensation worth CA$237k over the year to October 2023. Notably, that's an increase of 15% over the year before. Notably, the salary which is CA$158.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Canadian Software industry with market capitalizations below CA$276m, we found that the median total CEO compensation was CA$347k. In other words, 01 Communique Laboratory pays its CEO lower than the industry median. What's more, Andrew Cheung holds CA$130k worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	CA$158k	CA$178k	67%
Other	CA$79k	CA$28k	33%
Total Compensation	CA$237k	CA$206k	100%

On an industry level, around 70% of total compensation represents salary and 30% is other remuneration. 01 Communique Laboratory 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.

A Look at 01 Communique Laboratory Inc.'s Growth Numbers

01 Communique Laboratory Inc. has reduced its earnings per share by 5.3% a year over the last three years. Its revenue is down 51% over the previous year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 01 Communique Laboratory Inc. Been A Good Investment?

With a total shareholder return of -84% over three years, 01 Communique Laboratory Inc. shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 5 warning signs for 01 Communique Laboratory that investors should think about before committing capital to this 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. 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.