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Despite ATW Tech Inc.'s (CVE:ATW) share price growing positively in the past few years, the per-share earnings growth has not grown to investors' expectations, suggesting that there could be other factors at play driving the share price. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 29 June 2021. 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. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.
View our latest analysis for ATW Tech
Comparing ATW Tech Inc.'s CEO Compensation With the industry
Our data indicates that ATW Tech Inc. has a market capitalization of CA$21m, and total annual CEO compensation was reported as CA$216k for the year to December 2020. We note that's a decrease of 34% compared to last year. Notably, the salary which is CA$171.3k, represents most of the total compensation being paid.
On comparing similar-sized companies in the industry with market capitalizations below CA$247m, we found that the median total CEO compensation was CA$131k. This suggests that Michel Guay is paid more than the median for the industry. Moreover, Michel Guay also holds CA$1.6m worth of ATW Tech stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | CA$171k | CA$266k | 79% |
| Other | CA$45k | CA$63k | 21% |
| Total Compensation | CA$216k | CA$328k | 100% |
On an industry level, around 94% of total compensation represents salary and 6% is other remuneration. ATW Tech pays a modest slice of remuneration through salary, as compared to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
ATW Tech Inc.'s Growth
Over the last three years, ATW Tech Inc. has shrunk its earnings per share by 40% per year. It saw its revenue drop 45% over the last year.
Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.