Key Insights

• RenoWorks Software to hold its Annual General Meeting on 20th of June

• Total pay for CEO Doug Vickerson includes CA$202.4k salary

• Total compensation is similar to the industry average

• Over the past three years, RenoWorks Software's EPS fell by 28% and over the past three years, the total loss to shareholders 58%

Shareholders will probably not be too impressed with the underwhelming results at RenoWorks Software Inc. (CVE:RW) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 20th of June. 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. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for RenoWorks Software

How Does Total Compensation For Doug Vickerson Compare With Other Companies In The Industry?

According to our data, RenoWorks Software Inc. has a market capitalization of CA$7.7m, and paid its CEO total annual compensation worth CA$231k over the year to December 2023. That's a notable decrease of 13% on last year. In particular, the salary of CA$202.4k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Canadian Software industry with market capitalizations under CA$275m, the reported median total CEO compensation was CA$308k. This suggests that RenoWorks Software remunerates its CEO largely in line with the industry average. Moreover, Doug Vickerson also holds CA$617k worth of RenoWorks Software stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 75% of total compensation represents salary, while the remainder of 25% is other remuneration. RenoWorks Software pays out 87% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

RenoWorks Software Inc.'s Growth

RenoWorks Software Inc. has reduced its earnings per share by 28% a year over the last three years. Its revenue is up 7.3% over the last year.

Overall this is not a very positive result for shareholders. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. 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.