Doug Vickerson has been the CEO of RenoWorks Software Inc. (CVE:RW) since 2006. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.
How Does Doug Vickerson's Compensation Compare With Similar Sized Companies?
Our data indicates that RenoWorks Software Inc. is worth CA$9.2m, and total annual CEO compensation was reported as CA$183k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$161k. We examined a group of similar sized companies, with market capitalizations of below CA$264m. The median CEO total compensation in that group is CA$225k.
So Doug Vickerson is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at RenoWorks Software has changed from year to year.
Is RenoWorks Software Inc. Growing?
Over the last three years RenoWorks Software Inc. has shrunk its earnings per share by an average of 13% per year (measured with a line of best fit). Its revenue is up 14% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has RenoWorks Software Inc. Been A Good Investment?
Given the total loss of 26% over three years, many shareholders in RenoWorks Software Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Remuneration for Doug Vickerson is close enough to the median pay for a CEO of a similar sized company .
The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at RenoWorks Software.
Important note: RenoWorks Software 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 firstname.lastname@example.org. 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.