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In 2014 Derek Webb was appointed CEO of BIOREM Inc. (CVE:BRM). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Derek Webb's Compensation Compare With Similar Sized Companies?
Our data indicates that BIOREM Inc. is worth CA$17m, and total annual CEO compensation was reported as CA$344k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CA$235k. 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$210k.
Thus we can conclude that Derek Webb receives more in total compensation than the median of a group of companies in the same market, and of similar size to BIOREM Inc.. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at BIOREM, below.
Is BIOREM Inc. Growing?
BIOREM Inc. has increased its earnings per share (EPS) by an average of 71% a year, over the last three years (using a line of best fit). Its revenue is up 23% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 BIOREM Inc. Been A Good Investment?
Most shareholders would probably be pleased with BIOREM Inc. for providing a total return of 34% over three years. 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.
We compared total CEO remuneration at BIOREM Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Shareholders may want to check for free if BIOREM insiders are buying or selling shares.
Important note: BIOREM may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at email@example.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.