Yahoo Finance Is Mundoro Capital Inc.'s (CVE:MUN) CEO Paid Enough Relative To Peers?
Teo Dechev became the CEO of Mundoro Capital Inc. (CVE:MUN) in 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Mundoro Capital
How Does Teo Dechev's Compensation Compare With Similar Sized Companies?
According to our data, Mundoro Capital Inc. has a market capitalization of CA$10m, and paid its CEO total annual compensation worth CA$275k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$225k. We took a group of companies with market capitalizations below CA$264m, and calculated the median CEO total compensation to be CA$180k.
Thus we can conclude that Teo Dechev receives more in total compensation than the median of a group of companies in the same market, and of similar size to Mundoro Capital 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 Mundoro Capital has changed from year to year.
Is Mundoro Capital Inc. Growing?
Over the last three years Mundoro Capital Inc. has grown its earnings per share (EPS) by an average of 19% per year (using a line of best fit). Its revenue is down 51% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Mundoro Capital Inc. Been A Good Investment?
With a three year total loss of 9.7%, Mundoro Capital Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We examined the amount Mundoro Capital Inc. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of 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. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Shareholders may want to check for free if Mundoro Capital insiders are buying or selling shares.
Important note: Mundoro Capital may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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.
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.
