Since you want to know all you can about ALY? It's Unlikely That Shareholders Will Increase AnalytixInsight Inc.'s (CVE:ALY) Compensation By Much This Year
The share price of AnalytixInsight Inc. (CVE:ALY) has struggled to grow by much over the last few years and probably has to do with the fact that earnings growth has gone backwards. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 24 November 2022. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.
Check out our latest analysis for AnalytixInsight
How Does Total Compensation For Prakash Hariharan Compare With Other Companies In The Industry?
According to our data, AnalytixInsight Inc. has a market capitalization of CA$40m, and paid its CEO total annual compensation worth CA$270k over the year to December 2021. We note that's an increase of 38% above last year. Notably, the salary of CA$270k is the entirety of the CEO compensation.
On comparing similar-sized companies in the industry with market capitalizations below CA$267m, we found that the median total CEO compensation was CA$283k. This suggests that AnalytixInsight remunerates its CEO largely in line with the industry average. Furthermore, Prakash Hariharan directly owns CA$1.1m worth of shares in the company, implying that they are deeply invested in the company's success.
Talking in terms of the industry, salary represented approximately 71% of total compensation out of all the companies we analyzed, while other remuneration made up 29% of the pie. Speaking on a company level, AnalytixInsight prefers to tread along a traditional path, disbursing all compensation through a salary. 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 AnalytixInsight Inc.'s Growth Numbers
Over the last three years, AnalytixInsight Inc. has shrunk its earnings per share by 26% per year. It saw its revenue drop 44% over the last year.
Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has AnalytixInsight Inc. Been A Good Investment?
AnalytixInsight Inc. has not done too badly by shareholders, with a total return of 3.8%, over three years. It would be nice to see that metric improve in the future. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.
To Conclude...
AnalytixInsight pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. While it's true that the share price growth hasn't been bad, it's hard to overlook the lack of earnings growth and this makes us question whether there will be any strong catalyst for the stock to improve. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with 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. That's why we did our research, and identified 3 warning signs for AnalytixInsight (of which 1 is a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.
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.
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