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How Much is dynaCERT Inc.'s (CVE:DYA) CEO Getting Paid?

In 2012 Jim Payne was appointed CEO of dynaCERT Inc. (CVE:DYA). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.

View our latest analysis for dynaCERT

How Does Jim Payne's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that dynaCERT Inc. has a market cap of CA$144m, and reported total annual CEO compensation of CA$229k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CA$217k. We examined a group of similar sized companies, with market capitalizations of below CA$266m. The median CEO total compensation in that group is CA$159k.

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As you can see, Jim Payne is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean dynaCERT Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

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

TSXV:DYA CEO Compensation, October 11th 2019
TSXV:DYA CEO Compensation, October 11th 2019

Is dynaCERT Inc. Growing?

dynaCERT Inc. has reduced its earnings per share by an average of 39% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 252% over the last year.

As investors, we are a bit wary of companies that have lower earnings per share, over three years. 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. You might want to check this free visual report on analyst forecasts for future earnings.

Has dynaCERT Inc. Been A Good Investment?

With a three year total loss of 40%, dynaCERT Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We examined the amount dynaCERT 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.

While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling dynaCERT shares (free trial).

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.

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.