Synex Renewable Energy Corporation, a firm specialized in renewable energy, is poised for its upcoming Annual General Meeting (AGM) on Sunday. Despite the company witnessing significant financial downturns, CEO Daniel Russell's remuneration package is expected to be approved by shareholders.
Canada-based Synex has seen a marked decline in its financial health over the past three years. The company's market capitalization currently stands at CA$7.8 million, reflecting the challenges it faces within the competitive renewable energy sector. This valuation comes as Synex has experienced a substantial three-year revenue drop of 33% and an earnings per share (EPS) decrease by over half.
Despite these performance hurdles, CEO Daniel Russell's total remuneration for the fiscal year ending June 2023 remains unchanged at CA$217k. This figure is significantly below the industry median CEO compensation of CA$727k for companies of similar size. In addition to his salary, Russell holds shares in Synex valued at approximately CA$1.1 million.
The decision to maintain the CEO's pay package comes amid shareholder losses of around one-fifth over the same three-year period, highlighting the disconnect that can sometimes occur between executive compensation and company performance.
As Synex prepares for its AGM, investors and market watchers will be closely monitoring the outcome of the vote on Russell’s pay, as it may set a precedent for how remuneration is handled in cases where companies are not meeting performance expectations.
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