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How Much is BuildingIQ, Inc.'s (ASX:BIQ) CEO Getting Paid?

In 2013 Michael Nark was appointed CEO of BuildingIQ, Inc. (ASX:BIQ). 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for BuildingIQ

How Does Michael Nark's Compensation Compare With Similar Sized Companies?

According to our data, BuildingIQ, Inc. has a market capitalization of AU$5.1m, and paid its CEO total annual compensation worth AU$578k over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at AU$390k. We looked at a group of companies with market capitalizations under AU$293m, and the median CEO total compensation was AU$374k.

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As you can see, Michael Nark is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean BuildingIQ, Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

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

ASX:BIQ CEO Compensation, December 9th 2019
ASX:BIQ CEO Compensation, December 9th 2019

Is BuildingIQ, Inc. Growing?

Over the last three years BuildingIQ, Inc. has grown its earnings per share (EPS) by an average of 61% per year (using a line of best fit). It saw its revenue drop 2.9% over the last year.

This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has BuildingIQ, Inc. Been A Good Investment?

Since shareholders would have lost about 77% over three years, some BuildingIQ, Inc. shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We examined the amount BuildingIQ, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if BuildingIQ insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.