Yahoo Finance Is Spin Master Corp. (TSE:TOY) Excessively Paying Its CEO?
The CEO of Spin Master Corp. (TSE:TOY) is Ronnen Harary. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Spin Master
How Does Ronnen Harary's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Spin Master Corp. has a market cap of CA$4.0b, and reported total annual CEO compensation of US$1.1m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at US$550k. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO total compensation was US$2.9m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Spin Master, below.
Is Spin Master Corp. Growing?
Over the last three years Spin Master Corp. has grown its earnings per share (EPS) by an average of 19% per year (using a line of best fit). Its revenue is down 3.0% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. You might want to check this free visual report on analyst forecasts for future earnings.
Has Spin Master Corp. Been A Good Investment?
With a total shareholder return of 17% over three years, Spin Master Corp. shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
Spin Master Corp. is currently paying its CEO below what is normal for companies of its size.
Since the business is growing, many would argue this suggests the pay is modest. The total shareholder return might not be amazing, but that doesn't mean that Ronnen Harary is paid too much. It's great to see a company that pays its CEO reasonably, even while growing. But for me, it's even better if insiders are also buying shares with their own cold, hard, cash. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Spin Master (free visualization of insider trades).
If you want to buy a stock that is better than Spin Master, this free list of high return, low debt companies is a great place to look.
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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.
