Yahoo Finance How Much Does JEMTEC's (CVE:JTC) CEO Make?
The CEO of JEMTEC Inc. (CVE:JTC) is Eric Caton, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
Check out our latest analysis for JEMTEC
How Does Total Compensation For Eric Caton Compare With Other Companies In The Industry?
At the time of writing, our data shows that JEMTEC Inc. has a market capitalization of CA$3.3m, and reported total annual CEO compensation of CA$352k for the year to July 2019. Notably, that's an increase of 12% over the year before. We note that the salary portion, which stands at CA$252.0k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the industry with market capitalizations below CA$271m, reported a median total CEO compensation of CA$492k. So it looks like JEMTEC compensates Eric Caton in line with the median for the industry. Moreover, Eric Caton also holds CA$713k worth of JEMTEC stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$252k | CA$246k | 72% |
Other | CA$100k | CA$67k | 28% |
Total Compensation | CA$352k | CA$313k | 100% |
On an industry level, around 62% of total compensation represents salary and 38% is other remuneration. According to our research, JEMTEC has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
JEMTEC Inc.'s Growth
JEMTEC Inc.'s earnings per share (EPS) grew 58% per year over the last three years. In the last year, its revenue is up 1.6%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 JEMTEC Inc. Been A Good Investment?
Most shareholders would probably be pleased with JEMTEC Inc. for providing a total return of 96% over three years. 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...
As previously discussed, Eric is compensated close to the median for companies of its size, and which belong to the same industry. Investors would surely be happy to see that returns have been great, and that earnings per share are up. Although the pay is close to the industry median, overall performance is excellent, so we don't think the CEO is paid too generously. Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for JEMTEC (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.
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.
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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