IMV Inc. (TSE:IMV) has not performed well recently and CEO Fred Ors will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 18 June 2021. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.
See our latest analysis for IMV
How Does Total Compensation For Fred Ors Compare With Other Companies In The Industry?
Our data indicates that IMV Inc. has a market capitalization of CA$197m, and total annual CEO compensation was reported as US$832k for the year to December 2020. That's a fairly small increase of 4.0% over the previous year. We note that the salary of US$431.6k makes up a sizeable portion of the total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations ranging from CA$122m to CA$486m, the reported median CEO total compensation was US$812k. This suggests that IMV remunerates its CEO largely in line with the industry average. What's more, Fred Ors holds CA$877k worth of shares in the company in their own name.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | US$432k | US$385k | 52% |
| Other | US$401k | US$415k | 48% |
| Total Compensation | US$832k | US$800k | 100% |
On an industry level, around 71% of total compensation represents salary and 29% is other remuneration. IMV pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
IMV Inc.'s Growth
IMV Inc. has reduced its earnings per share by 15% a year over the last three years. Its revenue is down 93% over the previous 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. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has IMV Inc. Been A Good Investment?
With a total shareholder return of -59% over three years, IMV Inc. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.