This Is Why Novra Technologies Inc.'s (CVE:NVI) CEO Compensation Looks Appropriate

Key Insights

• Novra Technologies to hold its Annual General Meeting on 27th of June
• Salary of CA$100.0k is part of CEO Harris Liontas's total remuneration
• The overall pay is 85% below the industry average
• Novra Technologies' EPS grew by 27% over the past three years while total shareholder loss over the past three years was 61%

Performance at Novra Technologies Inc. (CVE:NVI) has been rather uninspiring recently and shareholders may be wondering how CEO Harris Liontas plans to fix this. At the next AGM coming up on 27th of June, they can influence managerial decision making through voting on resolutions, including executive remuneration. Setting appropriate executive remuneration to align with the interests of shareholders may also be a way to influence the company performance in the long run. We think CEO compensation looks appropriate given the data we have put together.

Check out our latest analysis for Novra Technologies

How Does Total Compensation For Harris Liontas Compare With Other Companies In The Industry?

At the time of writing, our data shows that Novra Technologies Inc. has a market capitalization of CA$2.0m, and reported total annual CEO compensation of CA$100k for the year to December 2023. That's a notable decrease of 50% on last year. Notably, the salary of CA$100k is the entirety of the CEO compensation.

For comparison, other companies in the Canadian Communications industry with market capitalizations below CA$274m, reported a median total CEO compensation of CA$670k. In other words, Novra Technologies pays its CEO lower than the industry median. Moreover, Harris Liontas also holds CA$176k worth of Novra Technologies stock directly under their own name.

Component	2023	2022	Proportion (2023)
Salary	CA$100k	CA$200k	100%
Other	-	-	-
Total Compensation	CA$100k	CA$200k	100%

On an industry level, around 32% of total compensation represents salary and 68% is other remuneration. Speaking on a company level, Novra Technologies prefers to tread along a traditional path, disbursing all compensation through a salary. 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.

Novra Technologies Inc.'s Growth

Novra Technologies Inc.'s earnings per share (EPS) grew 27% per year over the last three years. It saw its revenue drop 9.0% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Novra Technologies Inc. Been A Good Investment?

With a total shareholder return of -61% over three years, Novra Technologies Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Novra Technologies pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. The fact that shareholders are sitting on a loss is certainly disheartening. The share price trend has diverged with the robust growth in EPS however, suggesting there may be other factors that could be driving the price performance. A key question may be why the fundamentals have not yet been reflected into the share price. The upcoming AGM will provide shareholders the opportunity to raise their concerns and evaluate if the board’s judgement and decision-making is aligned with their expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 3 warning signs for Novra Technologies that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com