Yahoo Finance Should You Worry About Cortex Business Solutions Inc’s (CVE:CBX) CEO Pay Cheque?
In 2015 Joel Leetzow was appointed CEO of Cortex Business Solutions Inc (CVE:CBX). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. 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 Cortex Business Solutions
How Does Joel Leetzow’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Cortex Business Solutions Inc has a market cap of CA$33m, and is paying total annual CEO compensation of CA$421k. (This is based on the year to 2018). That’s less than last year. While we always look at total compensation first, we note that the salary component is less, at CA$340k. We looked at a group of companies with market capitalizations under CA$264m, and the median CEO compensation was CA$155k.
Thus we can conclude that Joel Leetzow receives more in total compensation than the median of a group of companies in the same market, and of similar size to Cortex Business Solutions 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.
You can see, below, how CEO compensation at Cortex Business Solutions has changed over time.
Is Cortex Business Solutions Inc Growing?
Over the last three years Cortex Business Solutions Inc has grown its earnings per share (EPS) by an average of 119% per year. In the last year, its revenue is up 13%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s a real positive to see this sort of growth in a single year. That suggests a healthy and growing business.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Cortex Business Solutions Inc Been A Good Investment?
Most shareholders would probably be pleased with Cortex Business Solutions Inc for providing a total return of 125% over three years. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
We compared the total CEO remuneration paid by Cortex Business Solutions Inc, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Cortex Business Solutions (free visualization of insider trades).
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings 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.
