Yahoo Finance Our Take On Aurora Spine's (CVE:ASG) CEO Salary
This article will reflect on the compensation paid to Trent Northcutt who has served as CEO of Aurora Spine Corporation (CVE:ASG) since 2012. This analysis will also assess whether Aurora Spine pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
See our latest analysis for Aurora Spine
Comparing Aurora Spine Corporation's CEO Compensation With the industry
According to our data, Aurora Spine Corporation has a market capitalization of CA$16m, and paid its CEO total annual compensation worth US$143k over the year to December 2019. That's a notable decrease of 8.9% on last year. Notably, the salary which is US$131.0k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under CA$267m, the reported median total CEO compensation was US$375k. This suggests that Trent Northcutt is paid below the industry median. Moreover, Trent Northcutt also holds CA$1.5m worth of Aurora Spine stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2019 | 2018 | Proportion (2019) |
Salary | US$131k | US$125k | 92% |
Other | US$12k | US$32k | 8% |
Total Compensation | US$143k | US$157k | 100% |
Talking in terms of the industry, salary represented approximately 67% of total compensation out of all the companies we analyzed, while other remuneration made up 33% of the pie. According to our research, Aurora Spine has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Aurora Spine Corporation's Growth
Aurora Spine Corporation has seen its earnings per share (EPS) increase by 46% a year over the past three years. Its revenue is down 19% over the previous 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. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Aurora Spine Corporation Been A Good Investment?
We think that the total shareholder return of 111%, over three years, would leave most Aurora Spine Corporation shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
As we touched on above, Aurora Spine Corporation is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. Given the strong history of shareholder returns, the shareholders are probably very happy with Trent's performance.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Aurora Spine that investors should look into moving forward.
Switching gears from Aurora Spine, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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