Yahoo Finance Is VIQ Solutions Inc.'s (CVE:VQS) CEO Being Overpaid?
Sebastien Pare has been the CEO of VIQ Solutions Inc. (CVE:VQS) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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 VIQ Solutions
How Does Sebastien Pare's Compensation Compare With Similar Sized Companies?
According to our data, VIQ Solutions Inc. has a market capitalization of CA$23m, and pays its CEO total annual compensation worth US$347k. (This number is for the twelve months until December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$240k. We took a group of companies with market capitalizations below CA$268m, and calculated the median CEO total compensation to be CA$142k.
As you can see, Sebastien Pare is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean VIQ Solutions Inc. is paying too much. 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 VIQ Solutions, below.
Is VIQ Solutions Inc. Growing?
On average over the last three years, VIQ Solutions Inc. has grown earnings per share (EPS) by 3.7% each year (using a line of best fit). It achieved revenue growth of 4.4% over the last year.
I'd prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has VIQ Solutions Inc. Been A Good Investment?
With a total shareholder return of 8.3% over three years, VIQ Solutions Inc. has done okay by shareholders. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
We compared total CEO remuneration at VIQ 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.
One might like to have seen stronger growth, and the shareholder returns have failed to inspire, over the last three years. Considering this, we wouldn't want to see any big pay rises, although we'd stop short of calling the CEO compensation unfair. Shareholders may want to check for free if VIQ Solutions insiders are buying or selling shares.
Important note: VIQ 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.
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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.
