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How Should Investors React To Questor Technology Inc.'s (CVE:QST) CEO Pay?

Audrey Mascarenhas has been the CEO of Questor Technology Inc. (CVE:QST) since 2005. First, this article will compare CEO compensation with compensation at similar sized companies. 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 Questor Technology

How Does Audrey Mascarenhas's Compensation Compare With Similar Sized Companies?

According to our data, Questor Technology Inc. has a market capitalization of CA$125m, and pays its CEO total annual compensation worth CA$392k. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$260k. We took a group of companies with market capitalizations below CA$266m, and calculated the median CEO total compensation to be CA$143k.

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It would therefore appear that Questor Technology Inc. pays Audrey Mascarenhas 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 better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Questor Technology, below.

TSXV:QST CEO Compensation, September 3rd 2019
TSXV:QST CEO Compensation, September 3rd 2019

Is Questor Technology Inc. Growing?

Over the last three years Questor Technology Inc. has grown its earnings per share (EPS) by an average of 87% per year (using a line of best fit). In the last year, its revenue is up 11%.

This shows that the company has improved itself over the last few years. Good news for shareholders. 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 Questor Technology Inc. Been A Good Investment?

Most shareholders would probably be pleased with Questor Technology Inc. for providing a total return of 520% over three years. 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 total CEO remuneration at Questor Technology 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.

However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Questor Technology.

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.