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Is Currency Exchange International Corp’s (TSE:CXI) CEO Paid At A Competitive Rate?

Randolph Pinna became the CEO of Currency Exchange International Corp (TSE:CXI) in 2007. First, this article will compare CEO compensation with compensation at similar sized companies. 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 process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Currency Exchange International

How Does Randolph Pinna’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Currency Exchange International Corp has a market cap of CA$181m, and is paying total annual CEO compensation of US$552k. That’s less than last year. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO compensation to be US$117k.

It would therefore appear that Currency Exchange International Corp pays Randolph Pinna more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. 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 Currency Exchange International, below.

TSX:CXI CEO Compensation November 16th 18

Is Currency Exchange International Corp Growing?

Over the last three years Currency Exchange International Corp has shrunk its earnings per share by an average of 5.0% per year. Its revenue is up 24% over last year.

Unfortunately, earnings per share have trended lower over the last three years. There’s no doubt that the silver lining is that revenue is up. But it isn’t sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO.

You might want to check this free visual report on analyst forecasts for future earnings.

Has Currency Exchange International Corp Been A Good Investment?

With a total shareholder return of 28% over three years, Currency Exchange International Corp shareholders would, in general, be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.

In Summary…

We compared the total CEO remuneration paid by Currency Exchange International Corp, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

While shareholder returns are acceptable, they don’t delight. So you may want to delve deeper, because we don’t think the CEO pay is too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Currency Exchange International Corp.

Or you might prefer examine intently this intuitive graph showing past earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.