Shareholders Will Probably Not Have Any Issues With Titan Logix Corp.'s (CVE:TLA) CEO Compensation

Key Insights

• Titan Logix's Annual General Meeting to take place on 23rd of January
• Total pay for CEO Nick Forbes includes CA$200.0k salary
• Total compensation is 37% below industry average
• Titan Logix's total shareholder return over the past three years was 48% while its EPS was down 7.0% over the past three years

Shareholders may be wondering what CEO Nick Forbes plans to do to improve the less than great performance at Titan Logix Corp. (CVE:TLA) recently. At the next AGM coming up on 23rd of January, they can influence managerial decision making through voting on resolutions, including executive remuneration. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

See our latest analysis for Titan Logix

Comparing Titan Logix Corp.'s CEO Compensation With The Industry

At the time of writing, our data shows that Titan Logix Corp. has a market capitalization of CA$20m, and reported total annual CEO compensation of CA$238k for the year to August 2024. Notably, that's an increase of 19% over the year before. Notably, the salary which is CA$200.0k, represents most of the total compensation being paid.

For comparison, other companies in the Canadian Electronic industry with market capitalizations below CA$289m, reported a median total CEO compensation of CA$376k. In other words, Titan Logix pays its CEO lower than the industry median.

Component	2024	2023	Proportion (2024)
Salary	CA$200k	CA$200k	84%
Other	CA$38k	-	16%
Total Compensation	CA$238k	CA$200k	100%

On an industry level, roughly 70% of total compensation represents salary and 30% is other remuneration. It's interesting to note that Titan Logix 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 Titan Logix Corp.'s Growth Numbers

Over the last three years, Titan Logix Corp. has shrunk its earnings per share by 7.0% per year. In the last year, its revenue is up 10%.

The decline in EPS is a bit concerning. While the revenue growth is good to see, it is outweighed by the fact that EPS are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation 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 Titan Logix Corp. Been A Good Investment?

Boasting a total shareholder return of 48% over three years, Titan Logix Corp. has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Despite the strong returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about the stock keeping up its current momentum. These are are some concerns that shareholders may want to address the board when they revisit their investment thesis.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which can't be ignored) in Titan Logix 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.

Have 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.