Yahoo Finance Should You Worry About RenoWorks Software Inc’s (CVE:RW) CEO Salary Level?
Doug Vickerson has been the CEO of RenoWorks Software Inc (CVE:RW) since 2006. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for RenoWorks Software
How Does Doug Vickerson’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that RenoWorks Software Inc has a market cap of CA$11m, and is paying total annual CEO compensation of CA$204k. We note that’s an increase of 26% above last year. We looked at a group of companies with market capitalizations under CA$266m, and the median CEO compensation was CA$155k.
As you can see, Doug Vickerson is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean RenoWorks Software Inc is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at RenoWorks Software, below.
Is RenoWorks Software Inc Growing?
On average over the last three years, RenoWorks Software Inc has shrunk earnings per share by 56% each year. Its revenue is up 13% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has RenoWorks Software Inc Been A Good Investment?
I think that the total shareholder return of 35%, over three years, would leave most RenoWorks Software Inc shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
In Summary…
We examined the amount RenoWorks Software 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.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
However, we can’t argue with the strong returns to shareholders, over the same time period. Considering this, shareholders are probably not too worried about the CEO compensation.
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.
