Yahoo Finance Should You Worry About AnalytixInsight Inc.’s (CVE:ALY) CEO Salary Level?
Prakash Hariharan has been the CEO of AnalytixInsight Inc. (CVE:ALY) since 2016. 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for AnalytixInsight
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How Does Prakash Hariharan’s Compensation Compare With Similar Sized Companies?
According to our data, AnalytixInsight Inc. has a market capitalization of CA$28m, and pays its CEO total annual compensation worth CA$230k. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at CA$180k. We examined a group of similar sized companies, with market capitalizations of below CA$265m. The median CEO compensation in that group is CA$156k.
Thus we can conclude that Prakash Hariharan receives more in total compensation than the median of a group of companies in the same market, and of similar size to AnalytixInsight Inc.. However, this doesn’t necessarily mean the pay 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 AnalytixInsight has changed from year to year.
Is AnalytixInsight Inc. Growing?
AnalytixInsight Inc. has increased its earnings per share (EPS) by an average of 57% a year, over the last three years (using a line of best fit). It achieved revenue growth of 55% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has AnalytixInsight Inc. Been A Good Investment?
Boasting a total shareholder return of 150% over three years, AnalytixInsight 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…
We examined the amount AnalytixInsight Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling AnalytixInsight (free visualization of insider trades).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
