Yahoo Finance Should You Worry About GINSMS Inc.'s (CVE:GOK) CEO Pay?
Joel Siang has been the CEO of GINSMS Inc. (CVE:GOK) since 2013. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for GINSMS
How Does Joel Siang's Compensation Compare With Similar Sized Companies?
Our data indicates that GINSMS Inc. is worth CA$4.5m, and total annual CEO compensation was reported as CA$138k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CA$127k. We looked at a group of companies with market capitalizations under CA$266m, and the median CEO total compensation was CA$212k.
Most shareholders would consider it a positive that Joel Siang takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. 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 GINSMS, below.
Is GINSMS Inc. Growing?
GINSMS Inc. has increased its earnings per share (EPS) by an average of 29% a year, over the last three years (using a line of best fit). Its revenue is down 50% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. 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 GINSMS Inc. Been A Good Investment?
Given the total loss of 89% over three years, many shareholders in GINSMS Inc. are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
It looks like GINSMS Inc. pays its CEO less than similar sized companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. We're not critical of the remuneration Joel Siang receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling GINSMS (free visualization of insider trades).
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.
