Key Insights

• Iveda Solutions will host its Annual General Meeting on 4th of December
• Total pay for CEO David Ly includes US$190.0k salary
• The total compensation is 64% less than the average for the industry
• Iveda Solutions' EPS declined by 1.2% over the past three years while total shareholder loss over the past three years was 99%

The underwhelming performance at Iveda Solutions, Inc. (NASDAQ:IVDA) recently has probably not pleased shareholders. The next AGM coming up on 4th of December will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. From our analysis below, we think CEO compensation looks appropriate for now.

How Does Total Compensation For David Ly Compare With Other Companies In The Industry?

Our data indicates that Iveda Solutions, Inc. has a market capitalization of US$4.7m, and total annual CEO compensation was reported as US$226k for the year to December 2023. That's a fairly small increase of 4.7% over the previous year. In particular, the salary of US$190.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the American Software industry with market capitalizations below US$200m, we found that the median total CEO compensation was US$622k. That is to say, David Ly is paid under the industry median. Furthermore, David Ly directly owns US$116k worth of shares in the company.

On an industry level, roughly 15% of total compensation represents salary and 85% is other remuneration. Iveda Solutions pays out 84% of remuneration in the form of a salary, significantly higher than the industry average. 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.

Iveda Solutions, Inc.'s Growth

Over the last three years, Iveda Solutions, Inc. has shrunk its earnings per share by 1.2% per year. It saw its revenue drop 30% over the last year.

A lack of EPS improvement is not good to see. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Iveda Solutions, Inc. Been A Good Investment?

Few Iveda Solutions, Inc. shareholders would feel satisfied with the return of -99% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 5 warning signs for Iveda Solutions you should be aware of, and 4 of them are a bit unpleasant.

Switching gears from Iveda Solutions, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.