Yahoo Finance Is CardioComm Solutions, Inc. (CVE:EKG) Excessively Paying Its CEO?
In 2010, Etienne Grima was appointed CEO of CardioComm Solutions, Inc. (CVE:EKG). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for CardioComm Solutions
How Does Etienne Grima's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that CardioComm Solutions, Inc. has a market cap of CA$4.2m, and reported total annual CEO compensation of CA$195k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$180k. We looked at a group of companies with market capitalizations under CA$279m, and the median CEO total compensation was CA$217k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of CardioComm Solutions. Talking in terms of the sector, salary represented approximately 94% of total compensation out of all the companies we analysed, while other remuneration made up 5.7% of the pie. CardioComm Solutions is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation
So Etienne Grima 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 CardioComm Solutions has changed over time.
Is CardioComm Solutions, Inc. Growing?
CardioComm Solutions, Inc. has reduced its earnings per share by an average of 89% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 19% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 CardioComm Solutions, Inc. Been A Good Investment?
Given the total loss of 57% over three years, many shareholders in CardioComm Solutions, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Remuneration for Etienne Grima is close enough to the median pay for a CEO of a similar sized company .
Returns have been disappointing and the company is not growing its earnings per share. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. Shifting gears from CEO pay for a second, we've spotted 4 warning signs for CardioComm Solutions you should be aware of, and 3 of them make us uncomfortable.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
