Most Shareholders Will Probably Find That The CEO Compensation For OneSoft Solutions Inc. (CVE:OSS) Is Reasonable

Under the guidance of CEO R. Kushniruk, OneSoft Solutions Inc. (CVE:OSS) has performed reasonably well recently. As shareholders go into the upcoming AGM on 04 May 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for OneSoft Solutions

How Does Total Compensation For R. Kushniruk Compare With Other Companies In The Industry?

At the time of writing, our data shows that OneSoft Solutions Inc. has a market capitalization of CA$73m, and reported total annual CEO compensation of CA$258k for the year to December 2020. That's just a smallish increase of 6.7% on last year. In particular, the salary of CA$200.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under CA$248m, the reported median total CEO compensation was CA$224k. So it looks like OneSoft Solutions compensates R. Kushniruk in line with the median for the industry. What's more, R. Kushniruk holds CA$3.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	CA$200k	CA$200k	77%
Other	CA$58k	CA$42k	23%
Total Compensation	CA$258k	CA$242k	100%

On an industry level, around 70% of total compensation represents salary and 30% is other remuneration. OneSoft Solutions is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

OneSoft Solutions Inc.'s Growth

Over the past three years, OneSoft Solutions Inc. has seen its earnings per share (EPS) grow by 8.6% per year. Its revenue is up 49% over the last year.

We like the look of the strong year-on-year improvement in revenue. Combined with modest EPS growth, we get a good impression of the company. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has OneSoft Solutions Inc. Been A Good Investment?

Boasting a total shareholder return of 34% over three years, OneSoft Solutions Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 5 warning signs for OneSoft Solutions you should be aware of, and 1 of them is a bit concerning.

Important note: OneSoft Solutions 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. 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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