Yahoo Finance How Much Did AnalytixInsight Inc.'s (CVE:ALY) CEO Pocket Last Year?
Prakash Hariharan became the CEO of AnalytixInsight Inc. (CVE:ALY) in 2016. 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 process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for AnalytixInsight
How Does Prakash Hariharan's Compensation Compare With Similar Sized Companies?
According to our data, AnalytixInsight Inc. has a market capitalization of CA$21m, and paid its CEO total annual compensation worth CA$180k over the year to December 2018. Notably, the salary of CA$180k is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below CA$279m. The median CEO total compensation in that group is CA$216k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of AnalytixInsight. On a sector level, around 81% of total compensation represents salary and 19% is other remuneration. Speaking on a company level, AnalytixInsight prefers to tread along a traditional path, disbursing all compensation through a salary.
So Prakash Hariharan is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. You can see, below, how CEO compensation at AnalytixInsight has changed over time.
Is AnalytixInsight Inc. Growing?
AnalytixInsight Inc. has reduced its earnings per share by an average of 2.1% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 24% over the last year.
Unfortunately there is a complete lack of earnings per share improvement, over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has AnalytixInsight Inc. Been A Good Investment?
With a total shareholder return of 10% over three years, AnalytixInsight Inc. shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
Prakash Hariharan is paid around the same as most CEOs of similar size companies.
We're not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We wouldn't say the CEO pay is too high, but it's probably fair to say that many shareholders would like to see improved performance, before any pay rise occurs. CEO compensation is an important area to keep your eyes on, but we've also identified 6 warning signs for AnalytixInsight (1 is significant!) that you should be aware of before investing here.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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