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Is AirBoss of America Corp.'s (TSE:BOS) CEO Pay Justified?

Gren Schoch is the CEO of AirBoss of America Corp. (TSE:BOS). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for AirBoss of America

How Does Gren Schoch's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that AirBoss of America Corp. has a market cap of CA$203m, and reported total annual CEO compensation of US$512k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$512k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$682k.

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That means Gren Schoch receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at AirBoss of America, below.

TSX:BOS CEO Compensation, February 1st 2020
TSX:BOS CEO Compensation, February 1st 2020

Is AirBoss of America Corp. Growing?

Over the last three years AirBoss of America Corp. has shrunk its earnings per share by an average of 18% per year (measured with a line of best fit). In the last year, its revenue is up 1.4%.

Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.

Has AirBoss of America Corp. Been A Good Investment?

Since shareholders would have lost about 29% over three years, some AirBoss of America Corp. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Gren Schoch is paid around what is normal the leaders of comparable size companies.

Returns have been disappointing and the company is not growing its earnings per share. Suffice it to say, we don't think the CEO is underpaid! Whatever your view on compensation, you might want to check if insiders are buying or selling AirBoss of America shares (free trial).

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

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.