Yahoo Finance Does Ceapro Inc.'s (CVE:CZO) CEO Pay Compare Well With Peers?
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Gilles Gagnon became the CEO of Ceapro Inc. (CVE:CZO) in 2012. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Ceapro
How Does Gilles Gagnon's Compensation Compare With Similar Sized Companies?
Our data indicates that Ceapro Inc. is worth CA$31m, and total annual CEO compensation is CA$1.1m. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at CA$480k. We took a group of companies with market capitalizations below CA$269m, and calculated the median CEO total compensation to be CA$144k.
Thus we can conclude that Gilles Gagnon receives more in total compensation than the median of a group of companies in the same market, and of similar size to Ceapro Inc.. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Ceapro has changed from year to year.
Is Ceapro Inc. Growing?
Over the last three years Ceapro Inc. has shrunk its earnings per share by an average of 106% per year (measured with a line of best fit). In the last year, its revenue is down -10%.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Ceapro Inc. Been A Good Investment?
Since shareholders would have lost about 44% over three years, some Ceapro Inc. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We examined the amount Ceapro Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
Over the same period, investors would have come away with nothing in the way of share price gains. In our opinion the CEO might be paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling Ceapro shares (free trial).
If you want to buy a stock that is better than Ceapro, this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.
