Yahoo Finance Here's What We Think About ProntoForms Corporation's (CVE:PFM) CEO Pay
The CEO of ProntoForms Corporation (CVE:PFM) is Alvaro Pombo. First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for ProntoForms
How Does Alvaro Pombo's Compensation Compare With Similar Sized Companies?
According to our data, ProntoForms Corporation has a market capitalization of CA$88m, and paid its CEO total annual compensation worth CA$397k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$256k. We looked at a group of companies with market capitalizations under CA$284m, and the median CEO total compensation was CA$224k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where ProntoForms stands. Speaking on an industry level, we can see that nearly 76% of total compensation represents salary, while the remainder of 24% is other remuneration. ProntoForms does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.
As you can see, Alvaro Pombo is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean ProntoForms Corporation is paying too much. 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 ProntoForms, below.
Is ProntoForms Corporation Growing?
On average over the last three years, ProntoForms Corporation has seen earnings per share (EPS) move in a favourable direction by 22% each year (using a line of best fit). In the last year, its revenue is up 24%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. You might want to check this free visual report on analyst forecasts for future earnings.
Has ProntoForms Corporation Been A Good Investment?
Most shareholders would probably be pleased with ProntoForms Corporation for providing a total return of 63% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We examined the amount ProntoForms Corporation 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.
However we must not forget that the EPS growth has been very strong over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shifting gears from CEO pay for a second, we've picked out 4 warning signs for ProntoForms that investors should be aware of in a dynamic business environment.
If you want to buy a stock that is better than ProntoForms, this free list of high return, low debt companies is a great place to look.
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.
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