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The share price of EnWave Corporation (CVE:ENW) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. The upcoming AGM on 19 March 2021 may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.
View our latest analysis for EnWave
How Does Total Compensation For Brent Charleton Compare With Other Companies In The Industry?
Our data indicates that EnWave Corporation has a market capitalization of CA$158m, and total annual CEO compensation was reported as CA$501k for the year to September 2020. That's a notable increase of 37% on last year. In particular, the salary of CA$290.0k, makes up a fairly large portion of the total compensation being paid to the CEO.
On comparing similar-sized companies in the industry with market capitalizations below CA$250m, we found that the median total CEO compensation was CA$312k. This suggests that Brent Charleton is paid more than the median for the industry.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | CA$290k | CA$221k | 58% |
| Other | CA$211k | CA$145k | 42% |
| Total Compensation | CA$501k | CA$366k | 100% |
Speaking on an industry level, nearly 60% of total compensation represents salary, while the remainder of 40% is other remuneration. There isn't a significant difference between EnWave and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at EnWave Corporation's Growth Numbers
EnWave Corporation has reduced its earnings per share by 23% a year over the last three years. Its revenue is down 27% over the previous year.
The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. 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 EnWave Corporation Been A Good Investment?
EnWave Corporation has generated a total shareholder return of 20% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.