Should Shareholders Reconsider C-Com Satellite Systems Inc.'s (CVE:CMI) CEO Compensation Package?
Key Insights
- C-Com Satellite Systems to hold its Annual General Meeting on 7th of May
- Total pay for CEO Leslie Klein includes CA$478.7k salary
- Total compensation is similar to the industry average
- C-Com Satellite Systems' three-year loss to shareholders was 33% while its EPS was down 11% over the past three years
Shareholders will probably not be too impressed with the underwhelming results at C-Com Satellite Systems Inc. (CVE:CMI) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 7th of May. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.
View our latest analysis for C-Com Satellite Systems
Comparing C-Com Satellite Systems Inc.'s CEO Compensation With The Industry
Our data indicates that C-Com Satellite Systems Inc. has a market capitalization of CA$42m, and total annual CEO compensation was reported as CA$552k for the year to November 2024. We note that's a decrease of 24% compared to last year. Notably, the salary which is CA$478.7k, represents most of the total compensation being paid.
In comparison with other companies in the Canadian Communications industry with market capitalizations under CA$276m, the reported median total CEO compensation was CA$584k. So it looks like C-Com Satellite Systems compensates Leslie Klein in line with the median for the industry. Furthermore, Leslie Klein directly owns CA$17m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | CA$479k | CA$441k | 87% |
| Other | CA$73k | CA$282k | 13% |
| Total Compensation | CA$552k | CA$723k | 100% |
Talking in terms of the industry, salary represented approximately 60% of total compensation out of all the companies we analyzed, while other remuneration made up 40% of the pie. It's interesting to note that C-Com Satellite Systems pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at C-Com Satellite Systems Inc.'s Growth Numbers
C-Com Satellite Systems Inc. has reduced its earnings per share by 11% a year over the last three years. Its revenue is down 42% over the previous year.
Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has C-Com Satellite Systems Inc. Been A Good Investment?
With a total shareholder return of -33% over three years, C-Com Satellite Systems Inc. shareholders would by and large be disappointed. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for C-Com Satellite Systems you should be aware of, and 1 of them is concerning.
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.
Valuation is complex, but we're here to simplify it.
Discover if C-Com Satellite Systems might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.