Kevin Shank has been the CEO of Pivot Technology Solutions, Inc. (TSE:PTG) since 2016, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Kevin Shank Compare With Other Companies In The Industry?
At the time of writing, our data shows that Pivot Technology Solutions, Inc. has a market capitalization of CA$99m, and reported total annual CEO compensation of US$1.0m for the year to December 2019. Notably, that's an increase of 12% over the year before. We note that the salary portion, which stands at CA$583.7k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the industry with market capitalizations below CA$264m, reported a median total CEO compensation of US$262k. Hence, we can conclude that Kevin Shank is remunerated higher than the industry median. Furthermore, Kevin Shank directly owns CA$539k worth of shares in the company.
Talking in terms of the industry, salary represented approximately 62% of total compensation out of all the companies we analyzed, while other remuneration made up 38% of the pie. There isn't a significant difference between Pivot Technology Solutions and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Pivot Technology Solutions, Inc.'s Growth Numbers
Pivot Technology Solutions, Inc.'s earnings per share (EPS) grew 94% per year over the last three years. In the last year, its revenue is down 8.9%.
Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Pivot Technology Solutions, Inc. Been A Good Investment?
We think that the total shareholder return of 41%, over three years, would leave most Pivot Technology Solutions, Inc. shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
As previously discussed, Kevin is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. Given the strong history of shareholder returns, the shareholders are probably very happy with Kevin's performance.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 5 warning signs for Pivot Technology Solutions (of which 2 are significant!) that you should know about in order to have a holistic understanding of the stock.
Important note: Pivot Technology Solutions is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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