Is Advent-AWI Holdings Inc.'s (CVE:AWI) CEO Pay Fair?
Alice Chiu became the CEO of Advent-AWI Holdings Inc. (CVE:AWI) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
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View our latest analysis for Advent-AWI Holdings
How Does Alice Chiu's Compensation Compare With Similar Sized Companies?
According to our data, Advent-AWI Holdings Inc. has a market capitalization of CA$14m, and pays its CEO total annual compensation worth CA$295k. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at CA$160k. We looked at a group of companies with market capitalizations under CA$268m, and the median CEO total compensation was CA$148k.
As you can see, Alice Chiu is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Advent-AWI Holdings Inc. is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Advent-AWI Holdings has changed from year to year.
Is Advent-AWI Holdings Inc. Growing?
Advent-AWI Holdings Inc. has increased its earnings per share (EPS) by an average of 5.8% a year, over the last three years (using a line of best fit). Its revenue is down -29% over last year.
I generally like to see a little revenue growth, but I'm happy with the EPS growth. 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 Advent-AWI Holdings Inc. Been A Good Investment?
Advent-AWI Holdings Inc. has served shareholders reasonably well, with a total return of 29% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
We compared the total CEO remuneration paid by Advent-AWI Holdings Inc., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
One might like to have seen stronger growth, and the shareholder returns have failed to inspire, over the last three years. So it's certainly hard to argue that the CEO is modestly paid, although we don't see the remuneration as an issue. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Advent-AWI Holdings.
If you want to buy a stock that is better than Advent-AWI Holdings, this free list of high return, low debt companies is a great place to look.
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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. Thank you for reading.
