Yahoo Finance Is Cymat Technologies Ltd.'s (CVE:CYM) CEO Pay Justified?
Mike Liik is the CEO of Cymat Technologies Ltd. (CVE:CYM). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Cymat Technologies
How Does Mike Liik's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Cymat Technologies Ltd. has a market cap of CA$9.0m, and reported total annual CEO compensation of CA$150k for the year to April 2019. Notably, the salary of CA$150k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under CA$288m, and the median CEO total compensation was CA$225k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Cymat Technologies stands. On a sector level, around 92% of total compensation represents salary and 7.6% is other remuneration. Cymat Technologies does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion. You can see, below, how CEO compensation at Cymat Technologies has changed over time.
Is Cymat Technologies Ltd. Growing?
Over the last three years Cymat Technologies Ltd. has grown its earnings per share (EPS) by an average of 25% per year (using a line of best fit). Its revenue is down 34% over last year.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Cymat Technologies Ltd. Been A Good Investment?
Given the total loss of 28% over three years, many shareholders in Cymat Technologies Ltd. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Cymat Technologies Ltd. is currently paying its CEO below what is normal for companies of its size.
Since the business is growing, many would argue this suggests the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. We're not critical of the remuneration Mike Liik receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. CEO compensation is an important area to keep your eyes on, but we've also identified 4 warning signs for Cymat Technologies (2 can't be ignored!) that you should be aware of before investing here.
If you want to buy a stock that is better than Cymat Technologies, this free list of high return, low debt companies is a great place to look.
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.
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