It's Unlikely That TrackX Holdings Inc.'s (CVE:TKX) CEO Will See A Huge Pay Rise This Year

Shareholders of TrackX Holdings Inc. (CVE:TKX) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 06 August 2021 could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for TrackX Holdings

How Does Total Compensation For Tim Harvie Compare With Other Companies In The Industry?

At the time of writing, our data shows that TrackX Holdings Inc. has a market capitalization of CA$12m, and reported total annual CEO compensation of CA$283k for the year to September 2020. That's a fairly small increase of 5.6% over the previous year. We note that the salary portion, which stands at CA$269.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under CA$251m, the reported median total CEO compensation was CA$198k. Hence, we can conclude that Tim Harvie is remunerated higher than the industry median.

On an industry level, roughly 73% of total compensation represents salary and 27% is other remuneration. TrackX Holdings is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at TrackX Holdings Inc.'s Growth Numbers

Over the past three years, TrackX Holdings Inc. has seen its earnings per share (EPS) grow by 58% per year. Its revenue is down 31% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has TrackX Holdings Inc. Been A Good Investment?

With a total shareholder return of -63% over three years, TrackX Holdings Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

TrackX Holdings pays its CEO a majority of compensation through a salary. Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. 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 pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 3 which shouldn't be ignored) in TrackX Holdings we think you should know about.

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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