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Is Cycliq Group Limited's (ASX:CYQ) CEO Pay Fair?

Simply Wall St

Paul Claessen is the CEO of Cycliq Group Limited (ASX:CYQ). 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. 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.

Check out our latest analysis for Cycliq Group

How Does Paul Claessen's Compensation Compare With Similar Sized Companies?

Our data indicates that Cycliq Group Limited is worth AU$1.9m, and total annual CEO compensation was reported as AU$199k for the year to June 2019. While we always look at total compensation first, we note that the salary component is less, at AU$134k. We looked at a group of companies with market capitalizations under AU$292m, and the median CEO total compensation was AU$381k.

A first glance this seems like a real positive for shareholders, since Paul Claessen is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.

The graphic below shows how CEO compensation at Cycliq Group has changed from year to year.

ASX:CYQ CEO Compensation, January 22nd 2020

Is Cycliq Group Limited Growing?

Cycliq Group Limited has increased its earnings per share (EPS) by an average of 43% a year, over the last three years (using a line of best fit). It saw its revenue drop 4.0% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Cycliq Group Limited Been A Good Investment?

With a three year total loss of 97%, Cycliq Group Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Cycliq Group Limited is currently paying its CEO below what is normal for companies of its size.

Many would consider this to indicate that the pay is modest since the business is growing. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. We're not critical of the remuneration Paul Claessen receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Cycliq Group.

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.

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.

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. Thank you for reading.