Quisitive Technology Solutions, Inc.'s (CVE:QUIS) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Quisitive Technology Solutions to hold its Annual General Meeting on 14th of August
• Salary of US$515.0k is part of CEO Mike Reinhart's total remuneration
• Total compensation is 579% above industry average
• Quisitive Technology Solutions' EPS grew by 7.3% over the past three years while total shareholder loss over the past three years was 78%

In the past three years, the share price of Quisitive Technology Solutions, Inc. (CVE:QUIS) 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. These are some of the concerns that shareholders may want to bring up at the next AGM held on 14th of August. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Quisitive Technology Solutions

How Does Total Compensation For Mike Reinhart Compare With Other Companies In The Industry?

Our data indicates that Quisitive Technology Solutions, Inc. has a market capitalization of CA$83m, and total annual CEO compensation was reported as US$1.6m for the year to December 2023. We note that's a decrease of 17% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$515k.

In comparison with other companies in the Canadian Software industry with market capitalizations under CA$276m, the reported median total CEO compensation was US$232k. This suggests that Mike Reinhart is paid more than the median for the industry. What's more, Mike Reinhart holds CA$8.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	US$515k	US$490k	33%
Other	US$1.1m	US$1.4m	67%
Total Compensation	US$1.6m	US$1.9m	100%

On an industry level, around 72% of total compensation represents salary and 28% is other remuneration. In Quisitive Technology Solutions' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Quisitive Technology Solutions, Inc.'s Growth Numbers

Over the past three years, Quisitive Technology Solutions, Inc. has seen its earnings per share (EPS) grow by 7.3% per year. It saw its revenue drop 4.4% over the last year.

We generally like to see a little revenue growth, but the modest improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Quisitive Technology Solutions, Inc. Been A Good Investment?

With a total shareholder return of -78% over three years, Quisitive Technology Solutions, Inc. shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Quisitive Technology Solutions that investors should think about before committing capital to this stock.

Important note: Quisitive Technology 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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com