Yahoo Finance How Should Investors React To ProntoForms Corporation's (CVE:PFM) CEO Pay?
Alvaro Pombo is the CEO of ProntoForms Corporation (CVE:PFM). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for ProntoForms
How Does Alvaro Pombo's Compensation Compare With Similar Sized Companies?
Our data indicates that ProntoForms Corporation is worth CA$64m, and total annual CEO compensation was reported as US$397k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$256k. We took a group of companies with market capitalizations below CA$265m, and calculated the median CEO total compensation to be CA$158k.
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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at ProntoForms has changed from year to year.
Is ProntoForms Corporation Growing?
ProntoForms Corporation has increased its earnings per share (EPS) by an average of 11% a year, over the last three years (using a line of best fit). It achieved revenue growth of 27% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.
Has ProntoForms Corporation Been A Good Investment?
Boasting a total shareholder return of 69% over three years, ProntoForms Corporation has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We compared the total CEO remuneration paid by ProntoForms Corporation, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, 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. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling ProntoForms (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
