Uniserve Communications Corporation's (CVE:USS) CEO Compensation Looks Acceptable To Us And Here's Why

Performance at Uniserve Communications Corporation (CVE:USS) has been rather uninspiring recently and shareholders may be wondering how CEO Kelly Walker plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 16 February 2023. 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 Uniserve Communications

How Does Total Compensation For Kelly Walker Compare With Other Companies In The Industry?

Our data indicates that Uniserve Communications Corporation has a market capitalization of CA$4.0m, and total annual CEO compensation was reported as CA$89k for the year to May 2022. That's a notable increase of 11% on last year. In particular, the salary of CA$86.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Canada Telecom industry with market capitalizations below CA$269m, we found that the median total CEO compensation was CA$483k. Accordingly, Uniserve Communications pays its CEO under the industry median.

Component	2022	2021	Proportion (2022)
Salary	CA$86k	CA$71k	96%
Other	CA$3.2k	CA$9.4k	4%
Total Compensation	CA$89k	CA$81k	100%

Speaking on an industry level, nearly 33% of total compensation represents salary, while the remainder of 67% is other remuneration. Uniserve Communications is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Uniserve Communications Corporation's Growth

Uniserve Communications Corporation's earnings per share (EPS) grew 109% per year over the last three years. Its revenue is down 6.9% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 Uniserve Communications Corporation Been A Good Investment?

With a total shareholder return of -38% over three years, Uniserve Communications Corporation shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Kelly receives almost all of their compensation through a salary. The loss to shareholders over the past three years is certainly concerning. 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. There needs to be more focus by management and the board to examine why the share price has diverged from fundamentals. In the upcoming AGM, shareholders should take this opportunity to raise these concerns with the board and revisit their investment thesis with regards to the company.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for Uniserve Communications (of which 2 are concerning!) that you should know about in order to have a holistic understanding of the stock.

Important note: Uniserve Communications is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.