Yahoo Finance A Look At Acceleware's (CVE:AXE) CEO Remuneration
This article will reflect on the compensation paid to Geoff Clark who has served as CEO of Acceleware Ltd. (CVE:AXE) since 2010. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Acceleware.
Check out our latest analysis for Acceleware
How Does Total Compensation For Geoff Clark Compare With Other Companies In The Industry?
Our data indicates that Acceleware Ltd. has a market capitalization of CA$18m, and total annual CEO compensation was reported as CA$373k for the year to December 2019. We note that's a decrease of 25% compared to last year. We note that the salary portion, which stands at CA$209.5k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the industry with market capitalizations below CA$266m, reported a median total CEO compensation of CA$227k. This suggests that Geoff Clark is paid more than the median for the industry. Furthermore, Geoff Clark directly owns CA$558k worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$209k | CA$201k | 56% |
Other | CA$164k | CA$294k | 44% |
Total Compensation | CA$373k | CA$494k | 100% |
Speaking on an industry level, nearly 81% of total compensation represents salary, while the remainder of 19% is other remuneration. Acceleware pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Acceleware Ltd.'s Growth
Acceleware Ltd.'s earnings per share (EPS) grew 49% per year over the last three years. Its revenue is down 79% over the previous year.
Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Acceleware Ltd. Been A Good Investment?
With a total shareholder return of 6.3% over three years, Acceleware Ltd. has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
As previously discussed, Geoff is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, we must not forget that the EPS growth has been very strong over three years. Looking at the same time period, we think that the shareholder returns are respectable. While it may be worth researching further, we don't see a problem with the high CEO pay, given the good EPS growth.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 4 warning signs for Acceleware you should be aware of, and 2 of them are significant.
Important note: Acceleware is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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