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Is OneSoft Solutions Inc.'s (CVE:OSS) CEO Overpaid Relative To Its Peers?

R. Kushniruk has been the CEO of OneSoft Solutions Inc. (CVE:OSS) since 2014. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for OneSoft Solutions

How Does R. Kushniruk's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that OneSoft Solutions Inc. has a market cap of CA$68m, and reported total annual CEO compensation of CA$241k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CA$167k. We looked at a group of companies with market capitalizations under CA$267m, and the median CEO total compensation was CA$160k.

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As you can see, R. Kushniruk is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean OneSoft Solutions Inc. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at OneSoft Solutions, below.

TSXV:OSS CEO Compensation, October 10th 2019
TSXV:OSS CEO Compensation, October 10th 2019

Is OneSoft Solutions Inc. Growing?

Over the last three years OneSoft Solutions Inc. has grown its earnings per share (EPS) by an average of 9.4% per year (using a line of best fit). It achieved revenue growth of 431% over the last year.

I like the look of the strong year-on-year improvement in revenue. With that in mind, the modestly improving EPS seems positive. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Shareholders might be interested in this free visualization of analyst forecasts.

Has OneSoft Solutions Inc. Been A Good Investment?

Boasting a total shareholder return of 200% over three years, OneSoft Solutions Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared total CEO remuneration at OneSoft Solutions Inc. with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

While we generally prefer to see stronger EPS growth, there's no arguing with the strong returns to shareholders, over the last three years. Considering this fine result for investors, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling OneSoft Solutions (free visualization of insider trades).

Important note: OneSoft Solutions 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.

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.