Yahoo Finance How Is Firan Technology Group's (TSE:FTG) CEO Paid Relative To Peers?
This article will reflect on the compensation paid to Brad Bourne who has served as CEO of Firan Technology Group Corporation (TSE:FTG) since 2004. This analysis will also assess whether Firan Technology Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Firan Technology Group
How Does Total Compensation For Brad Bourne Compare With Other Companies In The Industry?
Our data indicates that Firan Technology Group Corporation has a market capitalization of CA$36m, and total annual CEO compensation was reported as CA$548k for the year to November 2019. We note that's an increase of 25% above last year. In particular, the salary of CA$338.3k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below CA$266m, reported a median total CEO compensation of CA$432k. From this we gather that Brad Bourne is paid around the median for CEOs in the industry. Furthermore, Brad Bourne directly owns CA$1.3m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$338k | CA$338k | 62% |
Other | CA$209k | CA$102k | 38% |
Total Compensation | CA$548k | CA$440k | 100% |
Speaking on an industry level, nearly 63% of total compensation represents salary, while the remainder of 37% is other remuneration. Although there is a difference in how total compensation is set, Firan Technology Group more or less reflects the market in terms of setting the salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Firan Technology Group Corporation's Growth Numbers
Over the last three years, Firan Technology Group Corporation has shrunk its earnings per share by 30% per year. Its revenue is down 3.8% over the previous year.
The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Firan Technology Group Corporation Been A Good Investment?
With a three year total loss of 55% for the shareholders, Firan Technology Group Corporation would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
As we noted earlier, Firan Technology Group pays its CEO in line with similar-sized companies belonging to the same industry. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 3 warning signs for Firan Technology Group that investors should think about before committing capital to this stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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.
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