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How Much Did Ceapro Inc.'s (CVE:CZO) CEO Pocket Last Year?

Gilles Gagnon has been the CEO of Ceapro Inc. (CVE:CZO) since 2012. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Ceapro

How Does Gilles Gagnon's Compensation Compare With Similar Sized Companies?

According to our data, Ceapro Inc. has a market capitalization of CA$26m, and paid its CEO total annual compensation worth CA$555k over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CA$480k. We took a group of companies with market capitalizations below CA$265m, and calculated the median CEO total compensation to be CA$180k.

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Thus we can conclude that Gilles Gagnon receives more in total compensation than the median of a group of companies in the same market, and of similar size to Ceapro Inc.. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Ceapro has changed from year to year.

TSXV:CZO CEO Compensation, November 18th 2019
TSXV:CZO CEO Compensation, November 18th 2019

Is Ceapro Inc. Growing?

Over the last three years Ceapro Inc. has shrunk its earnings per share by an average of 114% per year (measured with a line of best fit). It achieved revenue growth of 35% over the last year.

Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Ceapro Inc. Been A Good Investment?

With a three year total loss of 77%, Ceapro Inc. would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We examined the amount Ceapro Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. Shareholders may want to check for free if Ceapro insiders are buying or selling shares.

If you want to buy a stock that is better than Ceapro, this free list of high return, low debt companies is a great place to look.

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.