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Is AirBoss of America Corp.'s (TSE:BOS) CEO Paid At A Competitive Rate?

Simply Wall St

Gren Schoch is the CEO of AirBoss of America Corp. (TSE:BOS). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for AirBoss of America

How Does Gren Schoch's Compensation Compare With Similar Sized Companies?

According to our data, AirBoss of America Corp. has a market capitalization of CA$197m, and pays its CEO total annual compensation worth US$512k. (This figure is for the year to December 2018). Notably, the salary of US$512k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under US$200m, and the median CEO total compensation was US$100k.

As you can see, Gren Schoch is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean AirBoss of America Corp. is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at AirBoss of America, below.

TSX:BOS CEO Compensation, August 12th 2019

Is AirBoss of America Corp. Growing?

AirBoss of America Corp. has reduced its earnings per share by an average of 18% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 6.0%.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Shareholders might be interested in this free visualization of analyst forecasts.

Has AirBoss of America Corp. Been A Good Investment?

Since shareholders would have lost about 34% over three years, some AirBoss of America Corp. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared total CEO remuneration at AirBoss of America Corp. with the amount paid at companies with a similar market capitalization. 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.

Over the same period, investors would have come away with nothing in the way of share price gains. In our opinion the CEO might be paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling AirBoss of America shares (free trial).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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.