Yahoo Finance Should You Worry About 01 Communique Laboratory Inc.'s (CVE:ONE) CEO Pay?
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
The CEO of 01 Communique Laboratory Inc. (CVE:ONE) is Andrew Cheung. First, this article will compare CEO compensation with compensation at similar sized companies. 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.
View our latest analysis for 01 Communique Laboratory
How Does Andrew Cheung's Compensation Compare With Similar Sized Companies?
Our data indicates that 01 Communique Laboratory Inc. is worth CA$12m, and total annual CEO compensation is CA$70k. (This number is for the twelve months until October 2018). Notably, the salary of CA$70k is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below CA$269m. The median CEO total compensation in that group is CA$145k.
A first glance this seems like a real positive for shareholders, since Andrew Cheung is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see a visual representation of the CEO compensation at 01 Communique Laboratory, below.
Is 01 Communique Laboratory Inc. Growing?
01 Communique Laboratory Inc. has increased its earnings per share (EPS) by an average of 80% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -59%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has 01 Communique Laboratory Inc. Been A Good Investment?
Boasting a total shareholder return of 138% over three years, 01 Communique Laboratory Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
It looks like 01 Communique Laboratory Inc. pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that Andrew Cheung deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. So you may want to check if insiders are buying 01 Communique Laboratory shares with their own money (free access).
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.
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.
