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Is Urbanimmersive Inc. (CVE:UI) Excessively Paying Its CEO?

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In 2012 Ghislain Lemire was appointed CEO of Urbanimmersive Inc. (CVE:UI). First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Urbanimmersive

How Does Ghislain Lemire's Compensation Compare With Similar Sized Companies?

According to our data, Urbanimmersive Inc. has a market capitalization of CA$4.1m, and pays its CEO total annual compensation worth CA$158k. (This number is for the twelve months until September 2018). We think total compensation is more important but we note that the CEO salary is lower, at CA$138k. We looked at a group of companies with market capitalizations under CA$261m, and the median CEO total compensation was CA$120k.

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It would therefore appear that Urbanimmersive Inc. pays Ghislain Lemire more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

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

TSXV:UI CEO Compensation, July 16th 2019
TSXV:UI CEO Compensation, July 16th 2019

Is Urbanimmersive Inc. Growing?

Earnings per share at Urbanimmersive Inc. are much the same as they were three years ago, albeit with a positive trend. In the last year, its revenue is up 257%.

It's hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Urbanimmersive Inc. Been A Good Investment?

Given the total loss of 69% over three years, many shareholders in Urbanimmersive Inc. are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared total CEO remuneration at Urbanimmersive Inc. with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. Shareholders may want to check for free if Urbanimmersive insiders are buying or selling shares.

If you want to buy a stock that is better than Urbanimmersive, this free list of high return, low debt companies is a great place to look.

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.