We Think Shareholders Are Less Likely To Approve A Pay Rise For Tribe Property Technologies Inc.'s (CVE:TRBE) CEO For Now

Key Insights

• Tribe Property Technologies' Annual General Meeting to take place on 17th of September
• Total pay for CEO Joseph Nakhla includes CA$250.0k salary
• The total compensation is similar to the average for the industry
• Tribe Property Technologies' EPS grew by 2.5% over the past three years while total shareholder loss over the past three years was 89%

Shareholders of Tribe Property Technologies Inc. (CVE:TRBE) will have been dismayed by the negative share price return over the last three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 17th of September. They could also influence management through voting on resolutions such as executive remuneration. 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 Tribe Property Technologies

Comparing Tribe Property Technologies Inc.'s CEO Compensation With The Industry

Our data indicates that Tribe Property Technologies Inc. has a market capitalization of CA$13m, and total annual CEO compensation was reported as CA$302k for the year to December 2023. Notably, that's an increase of 16% over the year before. Notably, the salary which is CA$250.0k, represents most of the total compensation being paid.

For comparison, other companies in the Canadian Software industry with market capitalizations below CA$271m, reported a median total CEO compensation of CA$302k. So it looks like Tribe Property Technologies compensates Joseph Nakhla in line with the median for the industry. What's more, Joseph Nakhla holds CA$944k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 77% of total compensation represents salary, while the remainder of 23% is other remuneration. Our data reveals that Tribe Property Technologies allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Tribe Property Technologies Inc.'s Growth

Tribe Property Technologies Inc. has seen its earnings per share (EPS) increase by 2.5% a year over the past three years. It achieved revenue growth of 14% over the last year.

We would argue that the modest growth in revenue is a notable positive. And the modest growth in EPS isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. 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 Tribe Property Technologies Inc. Been A Good Investment?

Few Tribe Property Technologies Inc. shareholders would feel satisfied with the return of -89% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for Tribe Property Technologies (of which 3 are a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

Important note: Tribe Property Technologies 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.