Yahoo Finance Is Sportscene Group Inc.'s (CVE:SPS.A) CEO Pay Fair?
Jean Bédard is the CEO of Sportscene Group Inc. (CVE:SPS.A). First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Sportscene Group
How Does Jean Bédard's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Sportscene Group Inc. has a market cap of CA$58m, and is paying total annual CEO compensation of CA$422k. (This number is for the twelve months until August 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CA$368k. We took a group of companies with market capitalizations below CA$268m, and calculated the median CEO total compensation to be CA$141k.
Thus we can conclude that Jean Bédard receives more in total compensation than the median of a group of companies in the same market, and of similar size to Sportscene Group 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.
You can see a visual representation of the CEO compensation at Sportscene Group, below.
Is Sportscene Group Inc. Growing?
On average over the last three years, Sportscene Group Inc. has grown earnings per share (EPS) by 104% each year (using a line of best fit). In the last year, its revenue is up 8.8%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Sportscene Group Inc. Been A Good Investment?
I think that the total shareholder return of 163%, over three years, would leave most Sportscene Group Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We examined the amount Sportscene Group 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.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. Whatever your view on compensation, you might want to check if insiders are buying or selling Sportscene Group 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.
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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.
