Key Insights

• Boat Rocker Media to hold its Annual General Meeting on 6th of June

• Salary of CA$612.0k is part of CEO John Young's total remuneration

• Total compensation is 269% above industry average

• Boat Rocker Media's three-year loss to shareholders was 88% while its EPS grew by 50% over the past three years

Shareholders of Boat Rocker Media Inc. (TSE:BRMI) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 6th of June could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Boat Rocker Media

How Does Total Compensation For John Young Compare With Other Companies In The Industry?

Our data indicates that Boat Rocker Media Inc. has a market capitalization of CA$47m, and total annual CEO compensation was reported as CA$1.2m for the year to December 2023. Notably, that's an increase of 40% over the year before. Notably, the salary which is CA$612.0k, represents a considerable chunk of the total compensation being paid.

On comparing similar-sized companies in the Canada Entertainment industry with market capitalizations below CA$273m, we found that the median total CEO compensation was CA$323k. Accordingly, our analysis reveals that Boat Rocker Media Inc. pays John Young north of the industry median. Moreover, John Young also holds CA$866k worth of Boat Rocker Media stock directly under their own name.

Speaking on an industry level, nearly 65% of total compensation represents salary, while the remainder of 35% is other remuneration. It's interesting to note that Boat Rocker Media allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Boat Rocker Media Inc.'s Growth Numbers

Over the past three years, Boat Rocker Media Inc. has seen its earnings per share (EPS) grow by 50% per year. It achieved revenue growth of 33% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Boat Rocker Media Inc. Been A Good Investment?

Few Boat Rocker Media Inc. shareholders would feel satisfied with the return of -88% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Boat Rocker Media that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.