Yahoo Finance Why Gatekeeper Systems Inc.'s (CVE:GSI) CEO Pay Matters To You
Doug Dyment has been the CEO of Gatekeeper Systems Inc. (CVE:GSI) since 2013. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Gatekeeper Systems
How Does Doug Dyment's Compensation Compare With Similar Sized Companies?
Our data indicates that Gatekeeper Systems Inc. is worth CA$11m, and total annual CEO compensation is CA$225k. (This is based on the year to August 2018). While we always look at total compensation first, we note that the salary component is less, at CA$171k. We took a group of companies with market capitalizations below CA$266m, and calculated the median CEO total compensation to be CA$138k.
It would therefore appear that Gatekeeper Systems Inc. pays Doug Dyment 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. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Gatekeeper Systems has changed from year to year.
Is Gatekeeper Systems Inc. Growing?
Over the last three years Gatekeeper Systems Inc. has shrunk its earnings per share by an average of 92% per year (measured with a line of best fit). Its revenue is up 47% over last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Gatekeeper Systems Inc. Been A Good Investment?
Since shareholders would have lost about 38% over three years, some Gatekeeper Systems Inc. shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared the total CEO remuneration paid by Gatekeeper Systems Inc., 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.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. Whatever your view on compensation, you might want to check if insiders are buying or selling Gatekeeper Systems shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
