Shareholders Will Probably Not Have Any Issues With Predictmedix AI Inc.'s (CSE:PMED) CEO Compensation

Key Insights

• Predictmedix AI to hold its Annual General Meeting on 14th of December
• Total pay for CEO Sheldon Kales includes CA$120.0k salary
• The total compensation is 48% less than the average for the industry
• Predictmedix AI's EPS grew by 6.2% over the past three years while total shareholder loss over the past three years was 89%

The performance at Predictmedix AI Inc. (CSE:PMED) has been rather lacklustre of late and shareholders may be wondering what CEO Sheldon Kales is planning to do about this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 14th of December. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

See our latest analysis for Predictmedix AI

How Does Total Compensation For Sheldon Kales Compare With Other Companies In The Industry?

According to our data, Predictmedix AI Inc. has a market capitalization of CA$6.0m, and paid its CEO total annual compensation worth CA$162k over the year to January 2023. That's a modest increase of 3.8% on the prior year. In particular, the salary of CA$120.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Canadian Electronic industry with market capitalizations below CA$272m, we found that the median total CEO compensation was CA$309k. In other words, Predictmedix AI pays its CEO lower than the industry median. Furthermore, Sheldon Kales directly owns CA$890k worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 73% of total compensation represents salary and 27% is other remuneration. Our data reveals that Predictmedix AI 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.

A Look at Predictmedix AI Inc.'s Growth Numbers

Predictmedix AI Inc. has seen its earnings per share (EPS) increase by 6.2% a year over the past three years. Its revenue is down 93% over the previous year.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest EPS growth gives us some relief. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Predictmedix AI Inc. Been A Good Investment?

Few Predictmedix AI 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.

To Conclude...

The loss to shareholders over the past three years is certainly concerning. Perhaps the poor price performance may have something to do with the the fact that earnings per share growth has not been performing as strongly either. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

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. We did our research and identified 6 warning signs (and 5 which can't be ignored) in Predictmedix AI 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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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.