We take a look at why QYOU Media Inc. (CVE:QYOU) CEO compensation is well deserved

Performance at QYOU Media Inc. (CVE:QYOU) has been pretty strong recently and CEO Curt Marvis has played a part in it. As the next General Meeting on March 14, 2022 approaches, shareholders will keep this in mind. The focus is likely to be on corporate strategy going forward as shareholders hear from the board and vote on resolutions such as executive compensation and other issues. Here’s our take on why we think CEO compensation isn’t extravagant.

See our latest analysis for QYOU Media

How does Curt Marvis’ total compensation compare to other companies in the industry?

At the time of writing, our data shows that QYOU Media Inc. has a market cap of C$62 million and reported total annual CEO compensation of C$397,000 for the year to June 2021. We note that this is an increase of 11% over the last year. In particular, the salary of CA$341.7,000 represents a large portion of the total compensation paid to the CEO.

In comparison to other companies in the industry with a market cap of less than C$255 million, the median CEO total compensation reported was C$317,000. This suggests that QYOU Media pays its CEO well in line with the industry average. Additionally, Curt Marvis also owns CA$546,000 worth of QYOU Media stock directly under his own name.

Making up 2021 2020 Percentage (2021)
Salary CA$342,000 CA$316,000 86%
Other CA$55,000 CA$42,000 14%
The total compensation CA$397,000 CA$358,000 100%

In terms of industry, salary made up about 84% of total compensation for all the companies we analyzed, while other compensation made up 16% of the pie. QYOU Media largely mirrors the industry average for the share of a salary in overall compensation. If salary is the main component of total compensation, this suggests that the CEO receives a higher fixed proportion of total compensation, regardless of performance.

TSXV: QYOU CEO Compensation March 8, 2022

A Look at QYOU Media Inc.’s Growth Numbers

Over the past three years, QYOU Media Inc. has seen its earnings per share (EPS) grow by 50% per year. It has achieved 224% revenue growth over the past year.

Shareholders would be happy to know that the company has improved over the past few years. The combination of strong revenue growth and improving mid-term EPS certainly indicates the kind of growth we like to see. Although we don’t have analyst forecasts, you might want to evaluate this data-rich visualization of earnings, revenue, and cash flow.

Was QYOU Media Inc. a good investment?

Most shareholders would probably be thrilled that QYOU Media Inc. is offering a 123% total return over three years. As a result, some may think the CEO should be paid more than is normal for companies of a similar size.

To conclude…

Since the company’s performance has been quite good recently, some shareholders may think that CEO compensation may not be the main focus of the upcoming AGM. In saying this, some shareholders may feel that perhaps the most important questions to be resolved are how management plans to steer the company towards sustainable profitability in the future.

CEO compensation is just one of many factors that must be considered when reviewing company performance. We have identified 4 warning signs for QYOU Media (1 is a bit worrying!) that you should be aware of before investing here.

Sure, you might find a fantastic investment by looking at a different set of stocks. So take a look at this free list of interesting companies.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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