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Is AnalytixInsight Inc.'s (CVE:ALY) CEO Paid At A Competitive Rate?

Prakash Hariharan became the CEO of AnalytixInsight Inc. (CVE:ALY) in 2016. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for AnalytixInsight

How Does Prakash Hariharan's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that AnalytixInsight Inc. has a market cap of CA$37m, and reported total annual CEO compensation of CA$180k for the year to December 2018. Notably, the salary of CA$180k is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below CA$266m. The median CEO total compensation in that group is CA$181k.

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So Prakash Hariharan is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at AnalytixInsight has changed over time.

TSXV:ALY CEO Compensation, December 2nd 2019
TSXV:ALY CEO Compensation, December 2nd 2019

Is AnalytixInsight Inc. Growing?

Over the last three years AnalytixInsight Inc. has grown its earnings per share (EPS) by an average of 3.2% per year (using a line of best fit). It saw its revenue drop 21% over the last year.

I generally like to see a little revenue growth, but it is good to see EPS growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has AnalytixInsight Inc. Been A Good Investment?

Most shareholders would probably be pleased with AnalytixInsight Inc. for providing a total return of 118% over three years. 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...

Remuneration for Prakash Hariharan is close enough to the median pay for a CEO of a similar sized company .

The company isn't showing particularly great growth, but shareholder returns have been pleasing. So we can conclude that on this analysis the CEO compensation seems pretty sound. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at AnalytixInsight.

If you want to buy a stock that is better than AnalytixInsight, this free list of high return, low debt companies is a great place to look.

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.