Canada Markets closed

Is ATW Tech Inc.'s (CVE:ATW) CEO Paid Enough Relative To Peers?

Simply Wall St

The CEO of ATW Tech Inc. (CVE:ATW) is Michel Guay. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for ATW Tech

How Does Michel Guay's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that ATW Tech Inc. has a market cap of CA$2.0m, and is paying total annual CEO compensation of CA$465k. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$282k. We looked at a group of companies with market capitalizations under CA$265m, and the median CEO total compensation was CA$161k.

It would therefore appear that ATW Tech Inc. pays Michel Guay more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at ATW Tech, below.

TSXV:ATW CEO Compensation, September 16th 2019

Is ATW Tech Inc. Growing?

On average over the last three years, ATW Tech Inc. has grown earnings per share (EPS) by 16% each year (using a line of best fit). In the last year, its revenue is down -9.7%.

This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has ATW Tech Inc. Been A Good Investment?

Given the total loss of 64% over three years, many shareholders in ATW Tech Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared the total CEO remuneration paid by ATW Tech Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at ATW Tech.

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

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.

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.