Yahoo Finance Should You Worry About Ellipsiz Communications Ltd.'s (CVE:ECT) CEO Salary Level?
Sam Tan has been the CEO of Ellipsiz Communications Ltd. (CVE:ECT) since 2017. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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 Ellipsiz Communications
How Does Sam Tan's Compensation Compare With Similar Sized Companies?
According to our data, Ellipsiz Communications Ltd. has a market capitalization of CA$775k, and paid its CEO total annual compensation worth US$115k over the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$115k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$157k.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Ellipsiz Communications stands. Talking in terms of the sector, salary represented approximately 66% of total compensation out of all the companies we analysed, while other remuneration made up 34% of the pie. It's interesting to note that Ellipsiz Communications pays out a greater portion of remuneration through salary, in comparison to the wider industry.
So Sam Tan receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. You can see a visual representation of the CEO compensation at Ellipsiz Communications, below.
Is Ellipsiz Communications Ltd. Growing?
Over the last three years Ellipsiz Communications Ltd. has shrunk its earnings per share by an average of 28% per year (measured with a line of best fit). It achieved revenue growth of 64% over the 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. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Ellipsiz Communications Ltd. Been A Good Investment?
Since shareholders would have lost about 94% over three years, some Ellipsiz Communications Ltd. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Sam Tan is paid around what is normal for the leaders of comparable size companies.
The company cannot boast particularly strong per share growth. And we think the shareholder returns - over three years - have been underwhelming. So it would take a bold person to suggest the pay is too modest. CEO compensation is an important area to keep your eyes on, but we've also identified 5 warning signs for Ellipsiz Communications (4 are a bit unpleasant!) that you should be aware of before investing here.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.
