This Is Why Shareholders May Want To Hold Back On A Pay Rise For Synex Renewable Energy Corporation's (TSE:SXI) CEO

Key Insights

• Synex Renewable Energy to hold its Annual General Meeting on 27th of November
• CEO Daniel Russell's total compensation includes salary of CA$208.0k
• The overall pay is 70% below the industry average
• Over the past three years, Synex Renewable Energy's EPS fell by 57% and over the past three years, the total loss to shareholders 21%

The underwhelming performance at Synex Renewable Energy Corporation (TSE:SXI) recently has probably not pleased shareholders. At the upcoming AGM on 27th of November, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

See our latest analysis for Synex Renewable Energy

How Does Total Compensation For Daniel Russell Compare With Other Companies In The Industry?

Our data indicates that Synex Renewable Energy Corporation has a market capitalization of CA$7.8m, and total annual CEO compensation was reported as CA$217k for the year to June 2023. This was the same as last year. We note that the salary portion, which stands at CA$208.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Canadian Renewable Energy industry with market capitalizations under CA$275m, the reported median total CEO compensation was CA$727k. In other words, Synex Renewable Energy pays its CEO lower than the industry median. Furthermore, Daniel Russell directly owns CA$1.1m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	CA$208k	CA$208k	96%
Other	CA$9.0k	CA$9.0k	4%
Total Compensation	CA$217k	CA$217k	100%

On an industry level, roughly 29% of total compensation represents salary and 71% is other remuneration. Investors will find it interesting that Synex Renewable Energy pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. 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.

A Look at Synex Renewable Energy Corporation's Growth Numbers

Over the last three years, Synex Renewable Energy Corporation has shrunk its earnings per share by 57% per year. Its revenue is down 33% 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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Synex Renewable Energy Corporation Been A Good Investment?

With a three year total loss of 21% for the shareholders, Synex Renewable Energy Corporation would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Synex Renewable Energy pays its CEO a majority of compensation through a salary. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 5 warning signs for Synex Renewable Energy (of which 3 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Important note: Synex Renewable Energy 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.