Here's Why We Think Iveda Solutions, Inc.'s (NASDAQ:IVDA) CEO Compensation Looks Fair

Key Insights

• Iveda Solutions to hold its Annual General Meeting on 5th of December
• Total pay for CEO David Ly includes US$190.0k salary
• The total compensation is 58% less than the average for the industry
• Over the past three years, Iveda Solutions' EPS grew by 9.5% and over the past three years, the total loss to shareholders 77%

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Shareholders may be wondering what CEO David Ly plans to do to improve the less than great performance at Iveda Solutions, Inc. (NASDAQ:IVDA) recently. 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 5th of December. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

See our latest analysis for Iveda Solutions

Comparing Iveda Solutions, Inc.'s CEO Compensation With The Industry

At the time of writing, our data shows that Iveda Solutions, Inc. has a market capitalization of US$6.2m, and reported total annual CEO compensation of US$225k for the year to December 2024. This means that the compensation hasn't changed much from last year. Notably, the salary which is US$190.0k, represents most of the total compensation being paid.

For comparison, other companies in the American Software industry with market capitalizations below US$200m, reported a median total CEO compensation of US$542k. In other words, Iveda Solutions pays its CEO lower than the industry median. What's more, David Ly holds US$62k worth of shares in the company in their own name.

Talking in terms of the industry, salary represented approximately 11% of total compensation out of all the companies we analyzed, while other remuneration made up 89% of the pie. Iveda Solutions is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Iveda Solutions, Inc.'s Growth

Over the past three years, Iveda Solutions, Inc. has seen its earnings per share (EPS) grow by 9.5% per year. In the last year, its revenue is up 21%.

We think the revenue growth is good. And the modest growth in EPS isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. 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 Iveda Solutions, Inc. Been A Good Investment?

The return of -77% over three years would not have pleased Iveda Solutions, Inc. shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The fact that shareholders have earned a negative share price return is certainly disconcerting. The disappointing performance may have something to do with the flat earnings growth. 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 4 warning signs for Iveda Solutions that investors should be aware of in a dynamic business environment.

Switching gears from Iveda Solutions, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.