The disappointing performance at MOQ Limited (ASX:MOQ) will make some shareholders rather disheartened. At the upcoming AGM on 08 November 2021, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. The data we gathered below shows that CEO compensation looks acceptable for now.

View our latest analysis for MOQ

How Does Total Compensation For Joe D'Addio Compare With Other Companies In The Industry?

At the time of writing, our data shows that MOQ Limited has a market capitalization of AU$40m, and reported total annual CEO compensation of AU$197k for the year to June 2021. That's a slight decrease of 3.6% on the prior year. Notably, the salary which is AU$180.0k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under AU$266m, the reported median total CEO compensation was AU$414k. Accordingly, MOQ pays its CEO under the industry median. Moreover, Joe D'Addio also holds AU$3.5m worth of MOQ stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 63% of total compensation represents salary and 37% is other remuneration. MOQ is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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 MOQ Limited's Growth Numbers

Over the last three years, MOQ Limited has shrunk its earnings per share by 86% per year. In the last year, its revenue is up 9.1%.

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. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has MOQ Limited Been A Good Investment?

With a three year total loss of 17% for the shareholders, MOQ Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for MOQ (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.