Shareholders are unlikely to be disappointed with the good results of NexgenRx Inc. (CVE: NXG) recently and they will keep that in mind when they go to the AGM on June 10, 2021. It would also be an opportunity for them to hear the board review the financial results, discuss the future strategy of the company to further improve the business and vote on all resolutions such as executive compensation. In our analysis below, we explain why we think CEO compensation looks acceptable and warrants an increase.
See our latest review for NexgenRx
NexgenRx Inc. CEO Compensation Comparison with Industry
According to our data, NexgenRx Inc. has a market capitalization of C $ 21 million and paid its CEO a total annual compensation of C $ 153,000 in the year until December 2020. This is about a notable drop of 16% compared to last year. In particular, the salary of CA $ 139.9,000 represents a large portion of the total compensation paid to the CEO.
Compared with other companies in the industry with market capitalizations of less than C $ 241 million, the reported median total CEO compensation was C $ 417,000. As a result, NexgenRx pays its CEO based on the industry median. In addition, Ron Loucks directly owns C $ 2.2 million in company stock, which means they are deeply invested in the success of the company.
|Salary||CA $ 140,000||CA $ 165,000||92%|
|Other||CA $ 13,000||CA $ 16,000||8%|
|Total compensation||CA $ 153,000||CA $ 181,000||100%|
At the industry level, approximately 26% of total compensation is salary and 74% is other compensation. NexgenRx pays a higher share of its compensation through salary compared to the industry as a whole. If the total compensation is oriented towards the salary, this suggests that the variable part – which is generally linked to performance, is lower.
Growth of NexgenRx Inc.
Over the past three years, NexgenRx Inc. has seen its earnings per share (EPS) increase by 128% per year. Last year, its turnover increased by 4.7%.
Overall, this is a positive result for shareholders, which shows that the company has improved in recent years. It’s nice to see the income heading north because that matches healthy trading conditions. While we don’t have an analyst forecast for the company, shareholders might want to take a look at this detailed historical chart of earnings, income and cash flow.
Has NexgenRx Inc. been a good investment?
NexgenRx Inc. has served shareholders reasonably well, with a total return of 30% over three years. But they would probably prefer not to see CEO pay far above the median.
Overall, the company hasn’t performed too badly in terms of performance, but we would like to see some improvement. If this continues on the same path, shareholders might feel even more confident in their investment and have little to no objections to CEO compensation. In fact, strategic decisions that could impact the future of the business might be a much more interesting topic for investors as it would help them set their longer-term expectations.
While paying attention to CEO compensation is important, investors should consider other parts of the business as well. This is why we have dug and identified 3 warning signs for NexgenRx that you need to know before you invest.
Of course, you might find a fantastic investment by looking at another set of stocks. So take a look at this free list of interesting companies.
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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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