Yahoo Finance Does AirIQ Inc.'s (CVE:IQ) CEO Salary Compare Well With Others?
Mike Robb has been the CEO of AirIQ Inc. (CVE:IQ) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for AirIQ
How Does Mike Robb's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that AirIQ Inc. has a market cap of CA$8.1m, and reported total annual CEO compensation of CA$147k for the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at CA$120k. We took a group of companies with market capitalizations below CA$261m, and calculated the median CEO total compensation to be CA$217k.
Most shareholders would consider it a positive that Mike Robb takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at AirIQ has changed from year to year.
Is AirIQ Inc. Growing?
Over the last three years AirIQ Inc. has shrunk its earnings per share by an average of 6.6% per year (measured with a line of best fit). Its revenue is up 43% over last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has AirIQ Inc. Been A Good Investment?
Boasting a total shareholder return of 93% over three years, AirIQ Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
It appears that AirIQ Inc. remunerates its CEO below most similar sized companies.
Mike Robb receives relatively low remuneration compared to similar sized companies. And the returns to shareholders were great, over the last few years. Although we could see higher growth, we'd argue the remuneration is modest, based on these observations. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at AirIQ.
Important note: AirIQ 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 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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