Absolute Software Corporation (TSE: ABST) CEO compensation increases may slow for now
Under the leadership of CEO Christy Wyatt, Absolute software company (TSE: ABST) has done relatively well recently. In light of this performance, CEO compensation is unlikely to be the primary objective of shareholders at the General Meeting on December 14, 2021. However, some shareholders may still be reluctant to be too generous with the compensation of the CEO. CEO.
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Comparison of Absolute Software Corporation CEO Compensation with Industry
Our data indicates that Absolute Software Corporation has a market capitalization of C $ 558 million and that the CEO’s total annual compensation was reported at US $ 1.9 million for the year through June 2021. It is This includes an increase of 45% over the previous year. Although this analysis focuses on total compensation, it should be recognized that the salary portion is lower, valued at US $ 420,000.
Comparing similar companies in the same industry with market capitalizations ranging from C $ 253 million to C $ 1.0 billion, we found that the median total CEO compensation was US $ 235,000. Therefore, we can conclude that Christy Wyatt is better paid than the industry median. In addition, Christy Wyatt also owns shares of Absolute Software valued at C $ 1.1 million directly under their own name.
|Making up||2021||2020||Proportion (2021)|
|Salary||US $ 420,000||US $ 420,000||22%|
|Other||1.5 million US dollars||US $ 895,000||78%|
|Total compensation||US $ 1.9 million||US $ 1.3 million||100%|
At the industry level, almost 87% of total compensation is salary, while the remainder 13% is other compensation. In the case of Absolute Software, non-salary compensation represents a larger share of total compensation, compared to the industry as a whole. If non-salary compensation dominates total salary, it is an indicator that the executive salary is linked to the performance of the company.
A look at Absolute Software Corporation’s growth figures
Over the past three years, Absolute Software Corporation has reduced its earnings per share by 21% per year. It achieved a turnover growth of 27% compared to last year.
The fall in EPS could worry some investors. But on the other hand, revenue growth is strong, suggesting future potential for EPS growth. These two metrics move in different directions, so while it’s hard to be confident in judging performance, we think the stock is worth watching. Historical performance can sometimes be a good indicator of what happens next, but if you want to take a look at the future of the business, this might be of interest to you. free viewing analyst forecasts.
Has Absolute Software Corporation been a good investment?
With a total shareholder return of 46% over three years, Absolute Software Corporation has done well with shareholders. So they might not be at all worried if the CEO were to be paid more than is normal for companies of the same size.
The overall performance of the company has been commendable, but there are still areas for improvement. EPS growth is still weak, and until it picks up, shareholders might find it difficult to approve a CEO salary increase because they are already paid above their industry average.
CEO compensation is just one of the many factors that should be taken into account when reviewing company performance. We did our research and identified 4 warning signs (and 2 that are a bit of a concern) in Absolute Software, we think you should know more.
Sure, you might find a fantastic investment looking at another set of stocks. So take a look at this free list of interesting companies.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.