Yahoo Finance How Should Investors React To Ellipsiz Communications Ltd.'s (CVE:ECT) CEO Pay?
Sam Tan became the CEO of Ellipsiz Communications Ltd. (CVE:ECT) in 2017. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.
View our latest analysis for Ellipsiz Communications
How Does Sam Tan's Compensation Compare With Similar Sized Companies?
Our data indicates that Ellipsiz Communications Ltd. is worth CA$1.9m, and total annual CEO compensation was reported as US$115k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$115k. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$121k.
That means Sam Tan receives fairly typical remuneration for the CEO of a company that size. 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 Ellipsiz Communications, below.
Is Ellipsiz Communications Ltd. Growing?
Over the last three years Ellipsiz Communications Ltd. has shrunk its earnings per share by an average of 22% per year (measured with a line of best fit). It achieved revenue growth of 57% over the last year.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Ellipsiz Communications Ltd. Been A Good Investment?
Since shareholders would have lost about 84% over three years, some Ellipsiz Communications Ltd. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Remuneration for Sam Tan is close enough to the median pay for a CEO of a similar sized company .
The per share growth could be better, in our view. And we think the shareholder returns - over three years - have been underwhelming. So it would take a bold person to suggest the pay is too modest. Whatever your view on compensation, you might want to check if insiders are buying or selling Ellipsiz Communications shares (free trial).
Important note: Ellipsiz Communications may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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.
