Yahoo Finance Here's Why It's Unlikely That POET Technologies Inc.'s (CVE:PTK) CEO Will See A Pay Rise This Year
Key Insights
POET Technologies to hold its Annual General Meeting on 21st of June
CEO Suresh Venkatesan's total compensation includes salary of US$462.0k
The overall pay is comparable to the industry average
POET Technologies' EPS declined by 0.06% over the past three years while total shareholder loss over the past three years was 78%
The results at POET Technologies Inc. (CVE:PTK) have been quite disappointing recently and CEO Suresh Venkatesan bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 21st of June. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.
View our latest analysis for POET Technologies
How Does Total Compensation For Suresh Venkatesan Compare With Other Companies In The Industry?
Our data indicates that POET Technologies Inc. has a market capitalization of CA$142m, and total annual CEO compensation was reported as US$803k for the year to December 2023. That's a notable decrease of 12% on last year. We note that the salary of US$462.0k makes up a sizeable portion of the total compensation received by the CEO.
In comparison with other companies in the Canada Semiconductor industry with market capitalizations under CA$275m, the reported median total CEO compensation was US$771k. This suggests that POET Technologies remunerates its CEO largely in line with the industry average. Furthermore, Suresh Venkatesan directly owns CA$373k worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$462k | US$462k | 58% |
Other | US$341k | US$451k | 42% |
Total Compensation | US$803k | US$913k | 100% |
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. It's interesting to note that POET Technologies pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at POET Technologies Inc.'s Growth Numbers
POET Technologies Inc. saw earnings per share stay pretty flat over the last three years. In the last year, its revenue is down 60%.
A lack of EPS improvement is not good to see. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 POET Technologies Inc. Been A Good Investment?
The return of -78% over three years would not have pleased POET Technologies Inc. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
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, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
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 4 warning signs (and 3 which are a bit unpleasant) in POET Technologies we think you should know about.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
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