Yahoo Finance Does Appulse's (CVE:APL) CEO Salary Compare Well With The Performance Of The Company?
This article will reflect on the compensation paid to Doug Baird who has served as CEO of Appulse Corporation (CVE:APL) since 2004. This analysis will also assess whether Appulse pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for Appulse
Comparing Appulse Corporation's CEO Compensation With the industry
According to our data, Appulse Corporation has a market capitalization of CA$4.3m, and paid its CEO total annual compensation worth CA$170k over the year to December 2019. Notably, that's an increase of 13% over the year before. In particular, the salary of CA$132.6k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below CA$263m, reported a median total CEO compensation of CA$321k. That is to say, Doug Baird is paid under the industry median. Furthermore, Doug Baird directly owns CA$201k worth of shares in the company.
Component | 2019 | 2018 | Proportion (2019) |
Salary | CA$133k | CA$133k | 78% |
Other | CA$37k | CA$18k | 22% |
Total Compensation | CA$170k | CA$151k | 100% |
On an industry level, roughly 60% of total compensation represents salary and 40% is other remuneration. According to our research, Appulse has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at Appulse Corporation's Growth Numbers
Appulse Corporation's earnings per share (EPS) grew 158% per year over the last three years. Its revenue is up 5.2% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Appulse Corporation Been A Good Investment?
Boasting a total shareholder return of 114% over three years, Appulse Corporation has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
To Conclude...
As we noted earlier, Appulse pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Considering robust EPS growth, we believe Doug to be modestly paid. Given the strong history of shareholder returns, the shareholders are probably very happy with Doug's performance.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for Appulse (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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