Roger Forde has been the CEO of Calyx Ventures Inc. (CVE:CYX) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Roger Forde's Compensation Compare With Similar Sized Companies?
Our data indicates that Calyx Ventures Inc. is worth CA$474k, and total annual CEO compensation was reported as CA$213k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CA$213k. We took a group of companies with market capitalizations below CA$280m, and calculated the median CEO total compensation to be CA$221k.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Calyx Ventures. Speaking on an industry level, we can see that nearly 76% of total compensation represents salary, while the remainder of 24% is other remuneration. Calyx Ventures pays out 100% of aggregate payment in the shape of a salary, which is significantly higher than the industry average.
So Roger Forde receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. The graphic below shows how CEO compensation at Calyx Ventures has changed from year to year.
Is Calyx Ventures Inc. Growing?
Over the last three years Calyx Ventures Inc. has shrunk its earnings per share by an average of 15% per year (measured with a line of best fit). Its revenue is down 99% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Calyx Ventures Inc. Been A Good Investment?
With a three year total loss of 95%, Calyx Ventures Inc. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Remuneration for Roger Forde is close enough to the median pay for a CEO of a similar sized company .
Returns have been disappointing and the company is not growing its earnings per share. Few would argue that it's wise for the company to pay any more, before returns improve. Taking a breather from CEO compensation, we've spotted 5 warning signs for Calyx Ventures (of which 3 don't sit too well with us!) you should know about in order to have a holistic understanding of the stock.
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.
If you spot an error that warrants correction, please contact the editor at email@example.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.
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