Key Insights

• Spectral Medical's Annual General Meeting to take place on 7th of June

• CEO Chris Seto's total compensation includes salary of CA$462.0k

• The total compensation is 42% higher than the average for the industry

• Spectral Medical's EPS declined by 21% over the past three years while total shareholder return over the past three years was 11%

Despite positive share price growth of 11% for Spectral Medical Inc. (TSE:EDT) over the last few years, earnings growth has been disappointing, which suggests something is amiss. The upcoming AGM on 7th of June may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

See our latest analysis for Spectral Medical

Comparing Spectral Medical Inc.'s CEO Compensation With The Industry

Our data indicates that Spectral Medical Inc. has a market capitalization of CA$131m, and total annual CEO compensation was reported as CA$754k for the year to December 2023. That's a notable decrease of 16% on last year. We note that the salary portion, which stands at CA$462.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Canadian Biotechs industry with market capitalizations below CA$273m, we found that the median total CEO compensation was CA$530k. This suggests that Chris Seto is paid more than the median for the industry. Moreover, Chris Seto also holds CA$294k worth of Spectral Medical stock directly under their own name.

On an industry level, around 67% of total compensation represents salary and 33% is other remuneration. Although there is a difference in how total compensation is set, Spectral Medical more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Spectral Medical Inc.'s Growth Numbers

Over the last three years, Spectral Medical Inc. has shrunk its earnings per share by 21% per year. It achieved revenue growth of 1.3% over the last year.