Yahoo Finance Our Take On EcoSynthetix Inc.'s (TSE:ECO) CEO Salary
Jeff MacDonald has been the CEO of EcoSynthetix Inc. (TSE:ECO) since 2015. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for EcoSynthetix
How Does Jeff MacDonald's Compensation Compare With Similar Sized Companies?
According to our data, EcoSynthetix Inc. has a market capitalization of CA$172m, and paid its CEO total annual compensation worth US$640k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$291k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$120k.
Thus we can conclude that Jeff MacDonald receives more in total compensation than the median of a group of companies in the same market, and of similar size to EcoSynthetix 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.
You can see a visual representation of the CEO compensation at EcoSynthetix, below.
Is EcoSynthetix Inc. Growing?
EcoSynthetix Inc. has increased its earnings per share (EPS) by an average of 59% a year, over the last three years (using a line of best fit). Its revenue is up 1.6% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. It could be important to check this free visual depiction of what analysts expect for the future.
Has EcoSynthetix Inc. Been A Good Investment?
With a total shareholder return of 26% over three years, EcoSynthetix Inc. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
We compared total CEO remuneration at EcoSynthetix Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at EcoSynthetix.
If you want to buy a stock that is better than EcoSynthetix, 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.
