Doug Vickerson became the CEO of RenoWorks Software Inc. (CVE:RW) in 2006. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This method should give us information to assess how appropriately the company pays the CEO.
How Does Doug Vickerson's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that RenoWorks Software Inc. has a market cap of CA$10m, and reported total annual CEO compensation of CA$183k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$161k. We looked at a group of companies with market capitalizations under CA$278m, and the median CEO total compensation was CA$218k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On an industry level, roughly 81% of total compensation represents salary and 19% is other remuneration. Our data reveals that RenoWorks Software allocates salary in line with the wider market.
So Doug Vickerson receives a similar amount to the median CEO pay, amongst 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 a visual representation of the CEO compensation at RenoWorks Software, below.
Is RenoWorks Software Inc. Growing?
On average over the last three years, RenoWorks Software Inc. has shrunk earnings per share by 14% each year (measured with a line of best fit). Its revenue is up 11% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has RenoWorks Software Inc. Been A Good Investment?
With a three year total loss of 45%, RenoWorks Software Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
Doug Vickerson is paid around the same as most CEOs of similar size companies.
Returns have been disappointing and the company is not growing its earnings per share. Few would argue that it's wise for the company to pay any more, before returns improve. Shifting gears from CEO pay for a second, we've spotted 5 warning signs for RenoWorks Software you should be aware of, and 2 of them can't be ignored.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.