Yahoo Finance The CEO Of Absolute Software Corporation (TSE:ABST) Might See A Pay Rise On The Horizon
The decent performance at Absolute Software Corporation (TSE:ABST) recently will please most shareholders as they go into the AGM coming up on 07 December 2022. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.
View our latest analysis for Absolute Software
Comparing Absolute Software Corporation's CEO Compensation With The Industry
At the time of writing, our data shows that Absolute Software Corporation has a market capitalization of CA$680m, and reported total annual CEO compensation of US$3.3m for the year to June 2022. We note that's an increase of 74% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at US$466k.
On examining similar-sized companies in the industry with market capitalizations between CA$271m and CA$1.1b, we discovered that the median CEO total compensation of that group was US$7.7m. Accordingly, Absolute Software pays its CEO under the industry median. Furthermore, Christy Wyatt directly owns CA$4.3m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2022 | 2021 | Proportion (2022) |
Salary | US$466k | US$420k | 14% |
Other | US$2.9m | US$1.5m | 86% |
Total Compensation | US$3.3m | US$1.9m | 100% |
On an industry level, roughly 71% of total compensation represents salary and 29% is other remuneration. In Absolute Software's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Absolute Software Corporation's Growth Numbers
Absolute Software Corporation has reduced its earnings per share by 108% a year over the last three years. Its revenue is up 52% over the last year.
The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Absolute Software Corporation Been A Good Investment?
We think that the total shareholder return of 67%, over three years, would leave most Absolute Software Corporation shareholders smiling. 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.
In Summary...
The company's overall performance, while not bad, could be better. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for Absolute Software (of which 1 is a bit concerning!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from Absolute Software, 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.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
