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How Much is BIOREM Inc.'s (CVE:BRM) CEO Getting Paid?

Derek Webb became the CEO of BIOREM Inc. (CVE:BRM) in 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for BIOREM

How Does Derek Webb's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that BIOREM Inc. has a market cap of CA$15m, and is paying total annual CEO compensation of CA$617k. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$242k. We examined a group of similar sized companies, with market capitalizations of below CA$268m. The median CEO total compensation in that group is CA$142k.

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As you can see, Derek Webb is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean BIOREM Inc. 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.

You can see, below, how CEO compensation at BIOREM has changed over time.

TSXV:BRM CEO Compensation, April 24th 2019
TSXV:BRM CEO Compensation, April 24th 2019

Is BIOREM Inc. Growing?

BIOREM Inc. has reduced its earnings per share by an average of 15% a year, over the last three years (measured with a line of best fit). Its revenue is up 7.9% over last year.

Unfortunately, earnings per share have trended lower over the last three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has BIOREM Inc. Been A Good Investment?

Boasting a total shareholder return of 33% over three years, BIOREM Inc. has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

We compared total CEO remuneration at BIOREM Inc. with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.

But clearly there are some positives, because investors have done well over the same time frame. So on this analysis we'd stop short of criticizing the level of CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at BIOREM.

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.