Shareholders Will Probably Hold Off On Increasing ProntoForms Corporation's (CVE:PFM) CEO Compensation For The Time Being

Performance at ProntoForms Corporation (CVE:PFM) has been reasonably good and CEO Alvaro Pombo has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 16 June 2021. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for ProntoForms

How Does Total Compensation For Alvaro Pombo Compare With Other Companies In The Industry?

Our data indicates that ProntoForms Corporation has a market capitalization of CA$136m, and total annual CEO compensation was reported as US$461k for the year to December 2020. We note that's an increase of 11% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$228k.

For comparison, other companies in the industry with market capitalizations below CA$242m, reported a median total CEO compensation of US$168k. Accordingly, our analysis reveals that ProntoForms Corporation pays Alvaro Pombo north of the industry median. Furthermore, Alvaro Pombo directly owns CA$4.7m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2020	2019	Proportion (2020)
Salary	US$228k	US$213k	49%
Other	US$233k	US$202k	51%
Total Compensation	US$461k	US$415k	100%

Speaking on an industry level, nearly 71% of total compensation represents salary, while the remainder of 29% is other remuneration. ProntoForms pays a modest slice of remuneration through salary, as compared to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

ProntoForms Corporation's Growth

Over the past three years, ProntoForms Corporation has seen its earnings per share (EPS) grow by 33% per year. In the last year, its revenue is up 14%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has ProntoForms Corporation Been A Good Investment?

We think that the total shareholder return of 183%, over three years, would leave most ProntoForms Corporation shareholders smiling. 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...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for ProntoForms that you should be aware of before investing.

Switching gears from ProntoForms, 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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