Key Insights

• Thinkific Labs will host its Annual General Meeting on 20th of June

• Total pay for CEO Greg Smith includes US$258.0k salary

• The total compensation is 64% less than the average for the industry

• Over the past three years, Thinkific Labs' EPS grew by 9.7% and over the past three years, the total loss to shareholders 79%

Performance at Thinkific Labs Inc. (TSE:THNC) has been rather uninspiring recently and shareholders may be wondering how CEO Greg Smith plans to fix this. One way they can exercise their influence on management is through voting on resolutions, such as executive remuneration at the next AGM, coming up on 20th of June. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. In our opinion, CEO compensation does not look excessive and we discuss why.

Check out our latest analysis for Thinkific Labs

How Does Total Compensation For Greg Smith Compare With Other Companies In The Industry?

At the time of writing, our data shows that Thinkific Labs Inc. has a market capitalization of CA$291m, and reported total annual CEO compensation of US$335k for the year to December 2023. This means that the compensation hasn't changed much from last year. In particular, the salary of US$258.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Canadian Software industry with market capitalizations ranging between CA$137m and CA$549m had a median total CEO compensation of US$921k. Accordingly, Thinkific Labs pays its CEO under the industry median. Furthermore, Greg Smith directly owns CA$93m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 75% of total compensation represents salary and 25% is other remuneration. Although there is a difference in how total compensation is set, Thinkific Labs more or less reflects the market in terms of setting the salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Thinkific Labs Inc.'s Growth Numbers

Thinkific Labs Inc.'s earnings per share (EPS) grew 9.7% per year over the last three years. It achieved revenue growth of 13% over the last year.

We would argue that the modest growth in revenue is a notable positive. And the improvement in EPSis modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..