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Is Axion Ventures Inc.'s (CVE:AXV) CEO Pay Fair?

Simply Wall St
·3 mins read

In 2016 John Bonner was appointed CEO of Axion Ventures Inc. (CVE:AXV). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.

Check out our latest analysis for Axion Ventures

How Does John Bonner's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Axion Ventures Inc. has a market cap of CA$58m, and reported total annual CEO compensation of US$205k for the year to December 2018. Notably, the salary of US$205k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below CA$264m, and calculated the median CEO total compensation to be CA$212k.

So John Bonner is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

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

TSXV:AXV CEO Compensation, January 31st 2020
TSXV:AXV CEO Compensation, January 31st 2020

Is Axion Ventures Inc. Growing?

Axion Ventures Inc. has increased its earnings per share (EPS) by an average of 13% a year, over the last three years (using a line of best fit). It achieved revenue growth of 26% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.

Has Axion Ventures Inc. Been A Good Investment?

Given the total loss of 45% over three years, many shareholders in Axion Ventures Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

John Bonner is paid around what is normal the leaders of comparable size companies.

We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling Axion Ventures 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.

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.