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Is Asure Software, Inc.'s (NASDAQ:ASUR) CEO Overpaid Relative To Its Peers?

Simply Wall St

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Pat Goepel became the CEO of Asure Software, Inc. (NASDAQ:ASUR) in 2010. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Asure Software

How Does Pat Goepel's Compensation Compare With Similar Sized Companies?

According to our data, Asure Software, Inc. has a market capitalization of US$150m, and pays its CEO total annual compensation worth US$969k. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at US$350k. We examined companies with market caps from US$100m to US$400m, and discovered that the median CEO total compensation of that group was US$1.2m.

So Pat Goepel receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at Asure Software has changed from year to year.

NasdaqCM:ASUR CEO Compensation, July 16th 2019

Is Asure Software, Inc. Growing?

On average over the last three years, Asure Software, Inc. has shrunk earnings per share by 30% each year (measured with a line of best fit). In the last year, its revenue is up 53%.

The reduction in earnings per share, over three years, is arguably concerning. On the other hand, the strong revenue growth suggests the business is growing. 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. It could be important to check this free visual depiction of what analysts expect for the future.

Has Asure Software, Inc. Been A Good Investment?

Boasting a total shareholder return of 95% over three years, Asure Software, Inc. 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.

In Summary...

Pat Goepel is paid around the same as most CEOs of similar size companies.

While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So all things considered I'd venture that the CEO pay is appropriate. Whatever your view on compensation, you might want to check if insiders are buying or selling Asure Software 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.