Yahoo Finance Is 01 Communique Laboratory Inc.'s (CVE:ONE) CEO Overpaid Relative To Its Peers?
The CEO of 01 Communique Laboratory Inc. (CVE:ONE) is Andrew Cheung. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for 01 Communique Laboratory
How Does Andrew Cheung's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that 01 Communique Laboratory Inc. has a market cap of CA$7.5m, and reported total annual CEO compensation of CA$70k for the year to October 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CA$70k. We examined a group of similar sized companies, with market capitalizations of below CA$262m. The median CEO total compensation in that group is CA$176k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at 01 Communique Laboratory, below.
Is 01 Communique Laboratory Inc. Growing?
Over the last three years 01 Communique Laboratory Inc. has grown its earnings per share (EPS) by an average of 27% per year (using a line of best fit). Its revenue is down 8.2% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has 01 Communique Laboratory Inc. Been A Good Investment?
I think that the total shareholder return of 50%, over three years, would leave most 01 Communique Laboratory Inc. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
It appears that 01 Communique Laboratory Inc. remunerates its CEO below most similar sized companies.
Since the business is growing, many would argue this suggests the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Andrew Cheung deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. The cherry on top would be if company insiders are buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling 01 Communique Laboratory shares (free trial).
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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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
