Shareholders May Find It Hard To Justify Increasing C-Com Satellite Systems Inc.'s (CVE:CMI) CEO Compensation For Now

Key Insights

• C-Com Satellite Systems' Annual General Meeting to take place on 8th of May
• CEO Leslie Klein's total compensation includes salary of CA$441.0k
• The total compensation is similar to the average for the industry
• Over the past three years, C-Com Satellite Systems' EPS grew by 12% and over the past three years, the total loss to shareholders 59%

Shareholders of C-Com Satellite Systems Inc. (CVE:CMI) 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. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 8th of May. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. 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 C-Com Satellite Systems

How Does Total Compensation For Leslie Klein Compare With Other Companies In The Industry?

Our data indicates that C-Com Satellite Systems Inc. has a market capitalization of CA$53m, and total annual CEO compensation was reported as CA$687k for the year to November 2023. That's a notable decrease of 13% on last year. Notably, the salary which is CA$441.0k, represents most of the total compensation being paid.

For comparison, other companies in the Canadian Communications industry with market capitalizations below CA$275m, reported a median total CEO compensation of CA$919k. From this we gather that Leslie Klein is paid around the median for CEOs in the industry. What's more, Leslie Klein holds CA$20m 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	CA$441k	CA$420k	64%
Other	CA$246k	CA$372k	36%
Total Compensation	CA$687k	CA$792k	100%

Speaking on an industry level, nearly 32% of total compensation represents salary, while the remainder of 68% is other remuneration. C-Com Satellite Systems is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at C-Com Satellite Systems Inc.'s Growth Numbers

Over the past three years, C-Com Satellite Systems Inc. has seen its earnings per share (EPS) grow by 12% per year. In the last year, its revenue is up 9.7%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has C-Com Satellite Systems Inc. Been A Good Investment?

Few C-Com Satellite Systems Inc. shareholders would feel satisfied with the return of -59% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. 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. In our study, we found 3 warning signs for C-Com Satellite Systems you should be aware of, and 2 of them make us uncomfortable.

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.