Why We Think infinitii ai inc.'s (FRA:Y31) CEO Compensation Is Not Excessive At All

Key Insights

• infinitii ai to hold its Annual General Meeting on 21st of November
• CEO Jean-Charles Phaneuf's total compensation includes salary of CA$180.0k
• The overall pay is 52% below the industry average
• infinitii ai's EPS grew by 50% over the past three years while total shareholder loss over the past three years was 51%

Shareholders may be wondering what CEO Jean-Charles Phaneuf plans to do to improve the less than great performance at infinitii ai inc. (FRA:Y31) recently. At the next AGM coming up on 21st of November, they can influence managerial decision making through voting on resolutions, including executive remuneration. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

Check out our latest analysis for infinitii ai

How Does Total Compensation For Jean-Charles Phaneuf Compare With Other Companies In The Industry?

Our data indicates that infinitii ai inc. has a market capitalization of €2.2m, and total annual CEO compensation was reported as CA$180k for the year to June 2024. This was the same as last year. Notably, the salary of CA$180k is the entirety of the CEO compensation.

For comparison, other companies in the German Software industry with market capitalizations below €189m, reported a median total CEO compensation of CA$374k. Accordingly, infinitii ai pays its CEO under the industry median.

Component	2024	2023	Proportion (2024)
Salary	CA$180k	CA$180k	100%
Other	-	-	-
Total Compensation	CA$180k	CA$180k	100%

On an industry level, roughly 64% of total compensation represents salary and 36% is other remuneration. At the company level, infinitii ai pays Jean-Charles Phaneuf solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at infinitii ai inc.'s Growth Numbers

infinitii ai inc.'s earnings per share (EPS) grew 50% per year over the last three years. It achieved revenue growth of 17% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has infinitii ai inc. Been A Good Investment?

With a total shareholder return of -51% over three years, infinitii ai inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

infinitii ai rewards its CEO solely through a salary, ignoring non-salary benefits completely. The fact that shareholders are sitting on a loss is certainly disheartening. This diverges with the robust growth in EPS, suggesting that there is a large discrepancy between share price and fundamentals. A key focus for the board and management will be how to align the share price with fundamentals. 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 5 warning signs (and 3 which don't sit too well with us) in infinitii ai we think you should know about.

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.