Yahoo Finance Is H2O Innovation Inc’s (CVE:HEO) CEO Being Overpaid?
In 2008 Frederic Dugre was appointed CEO of H2O Innovation Inc (CVE:HEO). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for H2O Innovation
How Does Frederic Dugre’s Compensation Compare With Similar Sized Companies?
Our data indicates that H2O Innovation Inc is worth CA$36m, and total annual CEO compensation is CA$332k. That’s less than last year. We looked at a group of companies with market capitalizations under CA$264m, and the median CEO compensation was CA$155k.
It would therefore appear that H2O Innovation Inc pays Frederic Dugre more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at H2O Innovation, below.
Is H2O Innovation Inc Growing?
H2O Innovation Inc has reduced its earnings per share by an average of 80% a year, over the last three years. It achieved revenue growth of 20% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has H2O Innovation Inc Been A Good Investment?
Since shareholders would have lost about 27% over three years, some H2O Innovation Inc shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
We compared total CEO remuneration at H2O Innovation 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.
Earnings per share have not grown in three years, and the revenue growth fails to impress us.
Over the same period, investors would have come away with nothing in the way of share price gains. Some might well form the view that the CEO is paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling H2O Innovation Inc shares (free trial).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
