Yahoo Finance How Should Investors React To Eguana Technologies Inc.'s (CVE:EGT) CEO Pay?
In 2015 Justin Holland was appointed CEO of Eguana Technologies Inc. (CVE:EGT). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Eguana Technologies
How Does Justin Holland's Compensation Compare With Similar Sized Companies?
According to our data, Eguana Technologies Inc. has a market capitalization of CA$26m, and paid its CEO total annual compensation worth CA$252k over the year to September 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CA$252k. We looked at a group of companies with market capitalizations under CA$269m, and the median CEO total compensation was CA$211k.
So Justin Holland receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Eguana Technologies has changed over time.
Is Eguana Technologies Inc. Growing?
Eguana Technologies Inc. has reduced its earnings per share by an average of 20% a year, over the last three years (measured with a line of best fit). Its revenue is up 57% over last year.
Investors should note that, over three years, earnings per share are down. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Eguana Technologies Inc. Been A Good Investment?
With a three year total loss of 47%, Eguana Technologies Inc. would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Justin Holland is paid around what is normal for the leaders of comparable size companies.
The per share growth could be better, in our view. And we think the shareholder returns - over three years - have been underwhelming. So many would argue that the CEO is certainly not underpaid. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Eguana Technologies (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.
