Is Creative Realities, Inc. (NASDAQ:CREX) Overpaying Its CEO?
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Rick Mills became the CEO of Creative Realities, Inc. (NASDAQ:CREX) in 2015. 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.
See our latest analysis for Creative Realities
How Does Rick Mills's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Creative Realities, Inc. has a market cap of US$21m, and is paying total annual CEO compensation of US$743k. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$330k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO total compensation in that group is US$461k.
As you can see, Rick Mills is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Creative Realities, Inc. is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Creative Realities has changed over time.
Is Creative Realities, Inc. Growing?
Creative Realities, Inc. has increased its earnings per share (EPS) by an average of 1.8% a year, over the last three years (using a line of best fit). Its revenue is up 82% over last year.
It's hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. You might want to check this free visual report on analyst forecasts for future earnings.
Has Creative Realities, Inc. Been A Good Investment?
Given the total loss of 63% over three years, many shareholders in Creative Realities, Inc. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We examined the amount Creative Realities, Inc. pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Creative Realities.
If you want to buy a stock that is better than Creative Realities, this free list of high return, low debt companies is a great place to look.
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.
