Yahoo Finance Why Firan Technology Group Corporation's (TSE:FTG) CEO Pay Matters To You
In 2004 Brad Bourne was appointed CEO of Firan Technology Group Corporation (TSE:FTG). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
Check out our latest analysis for Firan Technology Group
How Does Brad Bourne's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Firan Technology Group Corporation has a market cap of CA$50m, and reported total annual CEO compensation of CA$440k for the year to November 2018. We think total compensation is more important but we note that the CEO salary is lower, at CA$338k. We looked at a group of companies with market capitalizations under CA$283m, and the median CEO total compensation was 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 Firan Technology Group. On a sector level, around 77% of total compensation represents salary and 23% is other remuneration. So it seems like there isn't a significant difference between Firan Technology Group and the broader market, in terms of salary allocation in the overall compensation package.
As you can see, Brad Bourne is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Firan Technology Group Corporation is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. You can see, below, how CEO compensation at Firan Technology Group has changed over time.
Is Firan Technology Group Corporation Growing?
On average over the last three years, Firan Technology Group Corporation has seen earnings per share (EPS) move in a favourable direction by 12% each year (using a line of best fit). In the last year, its revenue is up 4.2%.
This demonstrates that the company has been improving recently. A good result. It's also good to see modest revenue growth, suggesting the underlying business is healthy. You might want to check this free visual report on analyst forecasts for future earnings.
Has Firan Technology Group Corporation Been A Good Investment?
With a three year total loss of 51%, Firan Technology Group Corporation would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared the total CEO remuneration paid by Firan Technology Group Corporation, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Having said that, shareholders may be disappointed with the weak returns over the last three years. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. Looking into other areas, we've picked out 3 warning signs for Firan Technology Group that investors should think about before committing capital to this stock.
If you want to buy a stock that is better than Firan Technology Group, this free list of high return, low debt companies is a great place to look.
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.
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. Thank you for reading.
